CASVI's 3A Sustainable Development Value Assessment Model (3A Model for short) is based on the culture of doing good and doing well that long emerged from the country's history, as well as taking into account the international consensus of sustainable development.
CASVI's sustainable development value assessment system includes:
Logic starting point grounded in: global trend, China's governing mindset, people-oriented principle, and business logic.
Modeling basis: the model is to assess companies, which in order to build towards a better future that is of higher quality, more efficient, fairer and more sustainable, employ innovative technology, operations and management, thereby producing a comprehensive economic, social and environmental contribution.
Assessment: the 3A Model is based on three "A" forces: AIM | Driving force, APPROACH | Innovation force, and ACTION｜Transformation force. Meanwhile, it is also a comprehensive assessment of aim, methods and benefits, as well a combination of economic, social and environmental benefits.
Main indicators in the sustainable development value assessment system:
Resource Utilization: comprehensively investigate into companies' energy-consumption management, water resources management, material-consumption management, and green office environment according to the social responsibility reports, annual reports, and other information as disclosed by public companies; for financial institutions, investigate into their contribution to "green finance". The results show that companies scored higher in resource utilization enjoy better stock market performance.
Management Innovation: comprehensively investigate into public companies' management innovation capabilities, according to their performance in investors relationship management, financial and non-financial information disclosure, corporate incentive mechanism for employees, internal control system and emergency response system. The results are the same: companies scored higher in management innovation enjoy higher stock returns.
CASVI's 3A Model has completed a closed loop from model design, indicator optimization, data generation, release of rankings and indices, to launching an ETF product. We believe that with the global trend of ESG, China will also embark on a new path with domestic adaptation, and contribute its wisdom and innovative practice to the global movement for sustainable development.
