ESG/ Sustainability Reporting
The Hong Kong Exchanges and Clearing Limited (HKEX) has announced that all listed companies will be required to comply with the Environmental, Social and Governance Reporting Guide (HKEX ESG Guide) with effect from 1st January 2016, otherwise the companies will need to publicly justify why they do not. Stepping into 2019, companies face the new challenge of enhanced disclosures on environmental key performance indicators in their reports, in addition to continuing disclosure on the management approach for environmental, social and governance (ESG) issues.
Under this context in Listing Rules, the HKEX ESG Guide would drive Hong Kong listed companies to upscale its CSR measures, increase transparency and take bolder action on sustainability issues. Various stakeholders, ranging from customers to investors, are going to examine listed companies' environmental and social performance.
The Singapore Exchange (SGX) has recently revised to require all companies listed on SGX to issue a sustainability report on a yearly basis with effect from any financial year ending on or after 31 December 2017. The Sustainability Reporting Guide (SGX SR Guide) has also been updated and issued by the SGX.
According to the SGX Sustainability Reporting Guide, the Board has ultimate responsibility for an issuer’s sustainability reporting. The Board should determine the ESG factors identified as material to the business and ensure that they are monitored and managed. The management should be in close interaction with the Board and enable the Board to perform sustainability governance in a structured and functioning manner. The “Phased Approach” is also put forth by the SGX to encourage all issuers to make progress in quality and depth of reporting year on year.
Regardless of where your company is starting from, CCA can help you present the right report to capture the sustainability values while fulfilling the HKEX and SGX requirements.
What Carbon Care Asia can offer to corporate clients: