Using social funds to propel BRI forward

Encouraging public and social welfare funds to take part in the Belt and Road Initiative by setting up a comprehensive financial service mechanism comprising social, development and commercial financing can not only provide more capital for Belt and Road projects, but also will help make the initiative more socially beneficial.

Social financing has developed in recent years, and seeks social and environmental benefits more than profit. An increasing number of wealthy people and profitable enterprises in the West have donated to charities in order to help the less fortunate improve their lives and livelihoods - and thus boosted public and social welfare financing.

According to data from Morningstar, a global financial services company, environmental, social and governance (ESG) funds increased from $655 billion in 2012 to $1.05 trillion in 2018. And a report issued by the State Street Global Advisors, an investment management company, in July 2018 said more than 80 percent of institutional investors believe the scale of ESG funds would increase drastically in the next five years.