Enhancing Chinese Pension Funds Development through ESG Investment Perspectives

Abstract

In current China, where the pension funds system is facing enormous pressure, this article will explore the positive impact of incorporating ESG investments into the Chinese pension funds system on its future development. Through research on the current situation of China's pension system, it is found that there are problems such as uneven regional distribution, unbalanced development of the three pillars, high population pressure and funding gap, high investment return requirements, and limited investment channels. By studying the feasible experiences of top ESG investment companies and leading countries in development, it is concluded that ESG investment contributes to improving the return on investment and stability of pension funds, and can alleviate the existing problems in China's pension funds. Finally, it is summarized that the feasible experience of combining ESG investment with China's pension funds is to take the lead in policies first, combined with strict supervision, and pay attention to talent cultivation.