What does the company do?
Nari Technology is a technology leader in grid secondary equipment and software, which automates dispatch, transmission and communication of power. The company contributes to China’s carbon neutral initiatives as renewables and rising power demand from the rapidly rising uptake of electric vehicles requires a full-suite upgrade of the power grid to avoid curtailment and safety concerns.
Nari is an integrated player in four divisions: power automation, telecommunication, transmission and generation, and the Investment Manager believes that the company can remain dominant in this industry with its high-barriers to entry. Nari has a strong R&D capability, exclusive power dispatching data, and an experienced, high quality workforce.
On the ESG front, the Investment Manager engaged with the company to seek clarifications on related party transaction policies, and encouraged the company to improve disclosures, including more transparency on the clean technology opportunity and business ethics to that of global standards.
Nari’s management has promised to improve ESG management and established a new ESG team working on disclosures. The company has recently issued its ESG report according to Global Reporting Initiative (‘GRI’) standards, which gave the Investment Manager a clearer understanding of the company’s clean technology opportunity and business ethics policy.
The GRI is an international independent standards organisation that helps businesses, governments and other organisations understand and communicate their impacts on isues such as climate change, human rights and corruption.
Companies selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.