On the afternoon of December 27, 2024, at the invitation of SGS Standards Technical Services Co., Ltd., Professor Wu Yuming, Director of the Urban and Regional Analysis Laboratory at the School of Business, East China University of Science and Technology, and Executive Director of the Oliver Hart Contract and Governance Research Center at East China University of Science and Technology, delivered a lecture on "ESG and Sustainability Evaluation of Listed Companies in China: A Theoretical Approach and the R&D Applications of the ECUST Wind Index" on behalf of the ECUST Wind ESG research group at the Crowne Plaza Hotel in Nanxinya, Shanghai.

Wu Yuming pointed out in the lecture that the ESG concept has become a key issue in the global capital market since its inception in the 1960s. Early Western industrialization triggered environmental and social issues, giving rise to the embryonic concept of ESG. Subsequently, international organizations such as the United Nations actively promoted ESG investment, gradually moving from concept to practice. Many exchanges and regulatory agencies in various countries also required listed companies to disclose ESG information. However, there are numerous issues and disagreements in the current ESG rating field. Different rating agencies have vastly different rating results for the same company due to differences in evaluation methods and inconsistent underlying data. The average correlation coefficient of the six mainstream ESG rating results internationally is only 0.54, and the six domestic ones are also only 0.43, which brings great difficulties to investors' decision-making and highlights the urgency of building industry standards.

In this context, the Oliver Hart Center for Contract and Governance Research at East China University of Science and Technology has formed a strong alliance with Wind Corporation. The team is led by Professor Wu Yuming and gathers multidisciplinary professionals to conduct in-depth research on ESG rating challenges. The ECUST-Wind ESG index developed by it has unique rating methods. Using historical data backtesting method, weights are determined based on the volatility of ESG indicators, accurately reflecting the ESG performance of enterprises in market fluctuations and crises; By using the information entropy weighting method and multi-level weight allocation method, complex data can be scientifically processed, key indicators can be screened, and comprehensive and representative evaluations can be ensured, effectively improving the adaptability and accuracy of the model.

In terms of data processing, ECUST-Wind ESG rating has significant advantages. The Wind ESG database integrates massive data sources, covering various types of reports such as A-shares and Hong Kong stocks, as well as data from various levels of regulators, media, and third-party institutions, laying a solid foundation for evaluation. Our professional data team utilizes advanced technology and strict processes to overcome difficulties in Chinese data processing, ensuring timely and accurate data. The evaluated company can correct data errors and engage in two-way interaction to improve data quality and enhance the credibility of the rating.

This index has a wide range of application scenarios. For investors, providing them with in-depth ESG analysis of individual stocks helps them build ESG investment strategies, manage investment portfolios, warn of risks, explore the value of ESG factors in quantitative investment, and optimize investment decisions. In the field of academic research, rich underlying data provides support for scholars to explore the relationship between ESG, corporate performance, and market volatility, and promotes theoretical development. For policy makers, it helps to build a sustainable investment ecosystem and standards, guide market resources towards companies with excellent ESG performance, and promote industrial green transformation.

The ECUST-Wind ESG index has been successfully applied in multiple industries, including chemical, new energy vehicles, software and information technology, intelligent manufacturing equipment, and other related indices. It accurately selects industry ESG benchmark companies such as CATL, BYD, and Kingsoft Office. These enterprises have become models of sustainable development in the industry, leading the trend of industrial upgrading and injecting green energy into high-quality economic development.

The collaboration between East China University of Science and Technology and Wind is an important innovative practice in the field of ESG. In the current acceleration of global economic green transformation, it provides a scientific and reliable ESG evaluation tool for the capital market, effectively promoting listed companies to improve their ESG performance and advancing the sustainable development of the capital market to a new level. It will have a profound impact on the green, coordinated, and sustainable development of the economy and society, and is expected to become a new benchmark in the ESG field, leading the industry towards standardization and maturity.

It is reported that East China University of Science and Technology has made significant breakthroughs in ESG research, and its joint development of the ECUST Wind ESG index with Wind Information Technology Co., Ltd. has attracted industry attention. This index provides a new measurement standard and analytical perspective for ESG evaluation and sustainable development of listed companies, and is of great significance in the current global ESG investment boom.