ESG Reporting Study for Hong Kong Listed Companies 2022
October 2022
Sustainable development has become mainstream throughout international capital markets. The environmental, social and governance (ESG) performance of companies has become a key area of concern for governments, regulators, corporates, investors, and the wider public.
Since the mandatory disclosure of ESG reports by listed companies in 2015, Hong Kong Exchanges and Clearing Limited (HKEX) has continued to enhance its ESG disclosure requirements. on 5 November 2021, the HKEX published the Guidance on Climate Disclosures to encourage and assist listed companies to report in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). On 10 December 2021, the HKEX updated Environmental, Social and Governance Reporting Guide (the “ESG Reporting Guide [2021 Version]”), requiring listed companies to publish ESG reports at the same time as annual reports. Such amendments would take effect for financial years commencing on or after 1 January 2022.
On the other hand, the Green and Sustainable Finance Cross-Agency Steering Group has announced in October 2020 its intention to make climate-related disclosure in line with the TCFD recommendations mandatory by 2025. In July 2021, the Green and Sustainable Finance Cross-Agency Steering Group expressed support for the adoption of future disclosure standards developed by the International Sustainability Standards Board (ISSB) and further expressed support for the Hong Kong's Climate Action Plan 2050 in October of the same year.
In this context, PwC conducted a study on ESG reports published by Hong Kong listed companies in 2021 to understand the compliance landscape and gaps in adoption of the ESG Reporting Guide [2021 Version]. Based on the analysis of study results, we highlighted suggestions on how to Optimise ESG management and improving the quality of disclosure, aiming to facilitate listed companies to better practice sustainable development.
This is the sixth consecutive year that PwC conducted the study on ESG reporting of Hong Kong listed companies. Combined with data obtained from previous years, we generate insights into the status and trends of ESG reporting, identify the best reporting practices and provide references for listed companies.
