ESG and Sustainability Services
ESG – A Board Room Matter
According to the survey on the performance of ESG reporting on Hong Kong listed companies conducted by BDO Hong Kong in 2018, although only 26% of the surveyed listed companies had top level management involvement, 32% of the surveyed listed companies were putting more effort in formulating ESG strategy as compared to 14% in the previous year's survey. ESG issues are pressing on corporate boards every day ranging from climate change to product responsibilities, health and safety, responsible investment, and even to overall operational sustainability. Companies need to have a good ESG strategy and governance process to identify and mitigate ESG risks effectively. Some questions for the board to consider:
- What kind of ESG strategy and goals have we set in the coming three to five years?
- Have we embedded ESG into our enterprise risk management process?
- Do we have any mechanism to monitor those ESG related risks and metrics?
- How do we address investors' expectations in terms of mitigating climate change matters and disclosure?
Environmental, social and governance (ESG) reporting is now a mandatory disclosure requirement where every listed company must comply or explain. The stakeholders may understand whether an organisation has developed strategies and action plans in responding to ESG and sustainability issues by studying the organisation's ESG report. ESG materiality assessment is an important element in the ESG reporting process as organisations could prioritise the importance and impact of certain ESG issues on their business operations. Some companies would also like to align its ESG practices and goals with the Sustainable Development Goals (SDGs).
Sustainability and Green Bonds
In tackling the impact of global climate change, every nation is encouraging organsations and people to act to reduce carbon-emission generating activities in order to reduce the speed of global warming and transit to low carbon economy. In 2017, the Government of HKSAR announced the plan to issue green bond and introduced a Green Bond Framework (the Framework) to support sustainable development and combat climate change. Under the Framework, the proceeds of green bonds will be used exclusively to finance or refinance projects, within the territory of HKSAR, that fall under one or more of the ‘eligible categories'as shown below:
- Renewable energy
- Energy efficiency and conservation
- Pollution prevention and control
- Waste management and resource recovery
- Water and wastewater management
- Nature conservation/ biodiversity
- Clean transportation
- Green buildings
Our ESG and Sustainability Services
Our ESG professionals possess in-depth knowledge and experience and can assist you to enhance your ESG or sustainability practices. Our ESG and sustainability services include:
- Carbon accounting and verification services
- ESG reporting assistance (HKEX ESG, GRI and other relating standards) and assurance
- ESG strategy formulation, governance and advices (eg advice on sustainable development goals (SDG)) ESG training and sharing on ESG best practices
- Green bond project and green finance consultancy (eg attestation on compliance with the Principles for Responsible Investment (PRI))
- Green building consultancy
- Standard attestation and certification assistant (eg.ISO 14064, 14001, 45001, SA 8000)
- Stakeholder engagement and survey
Contact us and talk to our consultant to give you an idea of what the board concerns most on ESG and sustainability.
Environmental, social and governance (ESG) reporting readiness support services
ESG Updates - October 2020 Issue
ESG Updates - August 2020 Issue
ESG Updates - June 2020 Issue
Survey on Environmental, Social and Governance (ESG)
BDO ESG AWARDS