What Are The Six Principles Of Lunar Capital

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Recently, sustainability become a vital issue all over the world. Sustainability could promote the development of economic, social and protect the environment. Investors take important parts of achieving the sustainability. However, the sustainability always be ignored by investors and the whole financial markets. Under the circumstance, Principles for Responsible Investment (PRI) supported by United Nations appear. The PRI shows the connection between environmental, social and governance (ESG) issues and finance. To merge ESG factors into the decision of investment could make a more stable financial system, decrease risks and increase financial returns.

Lunar Capital is one of the signatories of the United Nations-backed PRI. The PRI and its six principles provide a guideline for Lunar Capital.1 The article will analyse the Lunar Capital Management in term of the six principles. To judge whether to apply the principles can make more advantages to the company and is better for the sustainability and ESG issues.

Lunar Capital Management
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The company should address ESG issues in investment policy statements and incorporate issues into assessing the internal investment managers’s abilities. In addition, to use ESG-related tools and analysis more. Lunar capital incorporate ESG issues when it selects investments. For example, the operations of Lunar Capital keep to use sustainable and environmentally friendly approach in terms of environmental issue. For the social issue, Lunar Capital concentrate on the quality of product and the safety of food for the consumers.For example, Yonghong, as one of the investment portfolios, has its own cattle farms to provide the row materials and select the best quality materials from suppliers. Moreover, Lunar Capital increases its transparency of internal controls and financial report of all portfolio to respond to the government

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