CHINA. China Tourism Group Duty Free Corporation Limited (CTG Duty-Free) has welcomed the upgrading this month of its ESG rating from BBB to A by Morgan Stanley Capital International (MSCI).
CTG Duty-Free is the parent company of the world’s biggest travel retailer by sales, China Duty Free Group (CDFG).
This is the second upgrade, following one in August 2022 to BBB.
CTG Duty-Free launched the ESG project on 18 March 2022.
Since the launch, the group said it has promoted cross-departmental collaboration and deepened the understanding of ESG principles from headquarters to the key subsidiaries, thereby strengthening the implementation of such practices across its core operations.
“Within a span of two years, the company has achieved a two-level ascent in its MSCI ESG rating, progressing from catching up with leading international peers to achieving parity with them in rating, showcasing remarkable project accomplishments,” CTG Duty-Free said.
The group said the “systematic disclosure” of ESG information has increased transparency related to its responsible practices.
CTG Duty-Free has been included in various sustainability indices, such as the ESG-Pioneer 50 Index of Central Enterprises and the ESG-Pioneer 100 Index of Central Enterprises.
It has also been included in the following:
- CSI 800 ESG Index
- Shanghai and Shenzhen 300 ESG Leading Index
- SSE 180 ESG Leading Index
- Hang Seng Corporate Sustainability Index
- Hang Seng (China A) Corporate Sustainability Index
- Hang Seng (Mainland and HK) Corporate Sustainability Index
- Hang Seng Corporate Sustainability Benchmark Index
- Hang Seng (China A) Corporate Sustainability Benchmark Index
- Hang Seng SCHK China Central SOEs ESG 40 Index
- Hang Seng SCHK China Central State-owned Enterprises ESG Enhanced Index
- Hang Seng SCHK China Central State-owned Enterprises ESG Index.
CTG Duty-Free commented: “The MSCI ESG rating is widely recognised by global investment institutions as one of the authoritative and credible ESG evaluation systems. Both domestic and international investors widely refer to its rating results when making investment decisions.”
Citing MSCI ESG rating research, the group said approximately 60% of companies maintained their previous year’s rating, and only 28% achieved a rating upgrade.
“The steady improvement in CTG Duty-Free’s ESG rating reflects the high recognition from international authoritative rating agencies regarding the company’s sustainability level and its systematic ESG management,” the group said.
Looking ahead, CTG Duty-Free pledged to continue to pursue excellence and practice the philosophy of “doing business in good faith and providing quality services”.
It added: “The company will enhance and expand its core operations to meet the increasing demand for a better quality of life. In addition, it will continuously optimise its ESG governance system, ensuring substantial progress in ESG initiatives, aiming to contribute to exploring innovation, green practices and high-quality sustainable development for Chinese enterprises.” ✈
