At the 2026 Sustainable Global Leaders Conference and the Second Green Industry and Sustainable Consumption Expo, Wang Fang, Global Head of Investment Stewardship at Fidelity International, attended the "Long-Term Capital and Resilient Growth" forum and stated that every sustainable investment tool changes the risk profile of a portfolio: negative screening narrows the investable universe, ESG score tilting increases reliance on rating systems, climate target alignment introduces index deviation, and thematic investing creates concentrated risk exposure.
She used the example of evaluating oil companies: "If you adopt an industry-relative rating, what you see is a ranking compared to peers; if you use absolute standards, what you see is whether it meets a unified sustainable development standard. Both methods are reasonable, but they lead to different sector allocations."
She emphasized that these methods themselves have no absolute superiority or inferiority. The key is to clearly understand which risks we are taking on to achieve specific goals, and where we have allocated our risk budget.
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