MSCI Upgrades CMS (00867) ESG Rating to ¡®BBB¡¯, Corporate Governance Performance Exceeds its Global Peers
2020-09-03 17:23

Recently, the largest index provider, MSCI (Morgan Stanley Capital International Index) published a report on the ESG (Environmental, Social and Governance) rating for China Medical System Holdings Limited (¡°CMS¡±). With its outstanding performance in ESG related areas, CMS¡¯s ESG rating has been upgraded to ¡®BBB¡¯ from ¡®BB¡¯ and falls into a relatively leading range among its domestic peers in pharmaceutical industry.

According to the report, CMS surpassed the average performance of global peers in many areas such as corporate governance, product quality and safety, human resource management and access to health care. CMS performed especially well in corporate governance, in which MSCI commended, ¡°the Company falls into the highest scoring range relative to global peers. Governance practices are generally well aligned with shareholder interests.¡±

With the increasing concerns from the capital market on responsible investment, non-financial indicators such as corporate governance, environmental and social impact of listed companies have been given more and more attention. As MSCI-ESG rating focuses on substantive issues related to environment, society, and corporate governance, it has become an important basis of investment decisions for global well-known investment institutions.

CMS has always adheres to its goal of sustainable development, which is¡°Carrying out the concept of environmental protection, achieving the value of social responsibility, being committed to becoming a leading sustainable pharmaceutical enterprise in China¡±, and thoroughly implements it to work. The Group has established the mature ESG governance framework and mechanism£¬continuously increased the involvement of the Board, set annual targets and improvement plans, and aligned with a closed-loop process to carry out various ESG management work. The policies and regulations in corporate governance, compliance operations, supply chain management, product quality and safety, human resource management and environmental protection of the Group have also been gradually improved.

The upgrade of MSCI-ESG rating is inseparable with CMS's responsibility to the environment and society, as well as its long-term focus and resource investment on ESG management and information disclosure. As a phased achievement of CMS's ESG management, the higher rating reflects MSCI¡¯s further recognition and affirmation on Group's sustainable development and long-term investment value. In the future, CMS will continue to actively participate in public welfare, pay attention to the implementation of corporate social responsibility, and make contributions to the improvement of ecological environment and the sustainable development of society.