Companies

SMIC Joins Hang Seng's ESG Indexes

Published on: 26 May 2022 07:00 AM
by KnowESG
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Semiconductor Manufacturing International Corp., the largest contract chipmaker in mainland China, has been added to two ESG-focused indexes in Hong Kong.

Following a review, the company will be included in the HSI ESG Enhanced Index and the HSI ESG Enhanced Select Index, according to a statement released by Hang Seng Indexes Co. late Wednesday. The new policy will take effect on June 13th.

The Trump administration placed SMIC on a no-fly list in 2020 because of its ties to the "Chinese military-industrial complex," and the US is now reportedly considering more severe penalties against the company. The company was just included in the benchmark Hang Seng Index in Hong Kong.

Hang Seng Indexes checks equities for ESG risk ratings from data source Sustainalytics, compliance with the United Nations Global Compact Principles, and participation in controversial products including coal, cigarettes, and weaponry before including them in the ESG indexes.

A request for comment from Hang Seng Indexes was not immediately returned. Morningstar Inc., which owns Sustainalytics, declined to comment.

The ESG indicators will now include Orient Overseas International Ltd., Zhongsheng Group Holdings Ltd., and CK Infrastructure Holdings Ltd., while AAC Technologies Holdings Inc. has been removed.

Source: Bloomberg

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