China’s ESG investing challenge

East Capital co-founder Karine Hirn began her investing career in Russia in the 1990s before moving to China to head up the firm’s Asian expansion. She discusses the challenges of the Chinese market, why eastern Europe has the edge on corporate boards and why governance is key to ESG.

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East Capital’s Karine Hirn

The unstoppable rise of environmental, social and governance (ESG) investing since the signing of the 2015 Paris Agreement has been largely about climate. Then, with the start of the Covid crisis last year, social issues came to the fore.

However, for veteran emerging market fund manager Karine Hirn, it is the G that is by far the most important of the three letters.

“Everything starts with governance,” she says. “If governance is bad, then the chances are that the environmental and social sides will be bad as well.

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