ESG & Investing
Tencent Becomes a Can’t-Touch Stock for Some ESG Investors
- Exits came after tech giant’s ESG credentials were downgraded
- Storebrand, Candriam among firms to divest; others hold stock
Tencent Holdings Ltd. headquarters in Shenzhen, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Dozens of ESG funds sold more than $1 billion worth of Tencent Holdings Ltd. shares in the past six months, as concerns about Chinese censorship and regulatory risks grew.
Sustainalytics, an ESG research and ratings company, in late August downgraded Tencent to the category of “non-compliant” with UN principles. Since then, funds run by AXA Investment Managers SA, Candriam and Storebrand Asset Management sold their stakes; among ESG funds in Europe, more than 40 sold Hong Kong-listed shares valued at $1.2 billion, according to data compiled by Bloomberg.