Greater Bay Area Enterprise ESG Report
The Hong Kong Trade Development Council (HKTDC) released the Greater Bay Area Enterprise ESG Report, aiming to analyze the ESG development in the region.
This survey took the form of questionnaires and company interviews, involving a total of 300 Greater Bay Area companies. The survey includes sustainable actions, ESG practices and views on the development of green finance in Hong Kong.
Related Post: Hong Kong FSDC Releases ESG Brief Report
Sustainable Development of Enterprises in Greater Bay Area
In Greater Bay Area Enterprise ESG Report, HKTDC found that 65% of respondents have already implemented sustainable development practices, and another 35% are planning to implement them. In terms of specific practical methods, resource recycling (29%), clean energy (27%) and green office (22%) account for the highest proportions. Overall, the proportion of green practices among respondents ranges from 15% to 30%, and there is still extensive room for improvement in green infrastructure and green services. 41% have already developed a net zero plan and 33% are still considering developing a net zero plan.
On the question of why they choose sustainable development, 81% of the respondents said that sustainable practices can reduce costs and increase profits, and 78% hope to be consistent with market trends and gain more opportunities. 76% believe that sustainable development can meet the requirements of regulatory agencies, and 74% hope to improve company reputation.
Among companies that have implemented sustainable practices, 75% believe that the company’s visibility and reputation have been improved, 61% believe that the company’s capabilities in compliance, risk management have been improved, and 57% believe that sustainable practices have provided benefits to stakeholders. Only 2% believed that there had been no change in the business.
In terms of difficulties facing sustainable practices, respondents cited a shortage of talent with sustainable experience (77%), increasing short-term cost pressures (67%) and a lack of standardized guidance (61%) as major concerns.
ESG Development of Enterprises in Greater Bay Area
In terms of companies’ evaluation of their own environmental, social and governance aspects of Greater Bay Area Enterprise ESG Report, 83% of respondents believe that governance is the best developed, which is higher than environmental aspects (65%) and social aspects (76%.) 69% of companies understand ESG disclosure requirements, 17% of them have issued ESG reports and 44% are preparing them. Regarding their views on ESG reporting, 31% believe that ESG reporting is a good way to promote their image, and 28% believe that ESG reporting can promote high-quality development of companies.
99.7% of respondents plan to incorporate ESG factors into business processes in the next two years, with business operations (84%) and green products (78%) accounting for a high proportion. 30% plan to increase investment in ESG in the next two years, with the overall investment being approximately HK$370,000 (HK$400,000 in the manufacturing industry and HK$340,000 in the service industry).
Regarding the need for ESG development, 62% hope to obtain specific ESG indicators, 60% hope that regulatory agencies can provide ESG certification, and 56% hope to obtain reasonable ESG consulting services.
Hong Kong’s Role in Sustainable and ESG Development
Hong Kong’s green practices have been widely recognized by enterprises. In the Climate Action Blueprint 2050, Hong Kong proposes decarbonize strategies such as green buildings and green transportation, and plans to achieve carbon neutrality by 2050.
In terms of sustainable practices and ESG development, respondents believe that Hong Kong has advantages in green technology (67%), climate risk services (67%), green financial services (65%) and green professionals (65%). 70% of respondents believe that Hong Kong can help companies to obtain more green financing opportunities.
More than 70% of the respondents hope to use Hong Kong’s green financial products in the next two years, such as sustainable development consulting (76%), ESG rating (73%), green financial services (72%), green financing (71 %).
Reference:
Sustainability in the GBA Unlocking Opportunities and Empowering Growth
