The Case Competition serves as a catalyst for young minds to delve into the intricacies of the ESG industry. By participating in this esteemed event, full-time undergraduates from 19 eligible higher education institutions (HEIs) in Hong Kong, as well as selected universities in the Greater Bay Area, have the opportunity to showcase their skills and knowledge. Through engaging in real-world case studies and challenges, participants are encouraged to think critically, develop innovative solutions, and gain hands-on experience in sustainable finance.

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The purpose of the 2023 Forbes China ESG Innovation Selection Awards is to highlight the unique strengths of leading companies in ESG innovation and their significant contributions to regional and global challenges. The aim is to encourage the entire business community to embrace a more sustainable future. The selection process focuses on four key dimensions: corporate growth, ESG practice, innovation execution, and industry influence. It encompasses various industries such as finance, energy, environmental protection, industrial manufacturing, real estate, and enterprise technology. The goal is to recognize exemplary ESG innovation among Chinese enterprises, showcase their achievements, and analyse the current status and future trends of ESG development in China.

Alaya Consulting nominated China Everbright Bank and China Overseas Grand Oceans Group, both of which received honours at the awards ceremony.

Tony Wong, the founder of Alaya Consulting and a GRI training partner in Asia Pacific, provided GRI certification training to some of the award-winning companies. This training aimed to enhance participants’ understanding of the relationship between the Sustainable Development Goals (SDGs) and ESG reporting, as well as the significance of long-term value development for companies.

The post Alaya Consulting Co-organizes 2023 Forbes China ESG Innovation Enterprise Awards appeared first on ESG Reporting and Carbon Advisory in Hong Kong.

Our phone numbers and email addresses will remain the same, as will our website address and social media accounts. Our new facility offers us the opportunity to better serve our loyal customers and work with our valuable business partners. We look forward to continuing to serve your needs and work with you at our new location.

The post Our new office in Shenzhen appeared first on ESG Reporting and Carbon Advisory in Hong Kong.

While you have completed your ESG reports, don’t forget to go for the last mile, ensuring your stakeholders see an upward trend in your ESG scores. Below are the deadlines for some of the ESG scoring institutions. Alaya has solid successful record in raising our clients’ ESG scores and ratings. Send an email to tonywong@alayaconsulting.com.hk now.

• S&P CSA –June 30, 2022
• GRESB – July 2, 2022
• CDP – July 27, 2022

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The proposed standards set out requirements for disclosure of material information about a company’s significant sustainability-related risks and opportunities, necessary for investors to assess its enterprise value.

The ISSB is seeking feedback on the proposals over a 120-day consultation period closing on 29 July 2022. It will review feedback on the proposals in the second half of 2022 and aims to issue the new standards by the end of the year, after taking the feedback into consideration.

The post ISSB to set global baseline of sustainability disclosures appeared first on ESG Reporting and Carbon Advisory in Hong Kong.

The carbon footprint of meat products

Drastic changes in human diets are needed to curb greenhouse gas emissions. Research by GRAIN and the Institute for Agriculture and Trade Policy (IATP) shows that annual greenhouse gas emissions by the world’s five biggest meat and dairy companies together surpass emissions by Exxon, Shell and BP. With food accounting for almost a quarter of global GHG emissions, the United Nations Food and Agriculture Organization estimates that almost half of the emissions attributable to food come from animal products and within that, half of all farmed animal emissions come from beef and lamb.

For example, one kilogram of beef generates 60kg of GHG emissions, which is more than twice that of lamb and mutton. Methane generation by cows and the need to convert land for grazing and feeding contribute to the very high carbon footprint of beef. In this sense, supply chains of animal products are highly inefficient as they require additional grazing and feeding process compared to plant-based food products. A simple way to see it: livestock uses 77% of agricultural land, but even with that vast usage of land, the final meat and dairy products account for only 18% of calories produced globally.

Diet sustainability

The current global food system is incompatible with achieving net-zero emission. Apart from that, problems of malnutrition, food shortage and energy inefficiency within the food system constitute severe challenges to sustainability. Changing our diets to ones that are more plant-based is inevitable in the long run for a sustainable future.

If we stop eating meat, an individual’s carbon emission can be at least halved as the emissions of plant-based foods are typically 10 to 50 times smaller than those of animal products. Per capita carbon footprint of those consuming only vegan diets is 88% less than the average. By shifting to plant-based foods, the global food supply could increase by almost 50% without expanding croplands. It could also help reduce water usage by at least 50% since animal husbandry consumes more than half of fresh water.

Green eating in Hong Kong

Over the past year, the COVID-19 pandemic has triggered a sustainable diet trend in Hong Kong, leading to a surge in demand for plant-based food. Vegan and vegetarian orders in Deliveroo have shown a 160% increase. The number of plant-based options and offerings from partner restaurants has also increased to more than a thousand. Another poll also found a spike in willingness of Hong Kong consumers to adopt a plant-based diet.

The Coronavirus outbreak is clearly leading to greater consumer awareness regarding sustainability, ethical and health issues related to the meat industry. Mainstream consumers are now more conscious when choosing food and often connect values to their food choices. Whether you are an animal rights supporter, an environmentalist or you simply want to build a healthier lifestyle, Hong Kong population is inevitably shifting to greener food habits.

Sustainability needs efforts from everyone and actions as small as eating green once a week can contribute to a more sustainable environment.

The post Eat our way out of climate change appeared first on ESG Reporting and Carbon Advisory in Hong Kong.

ESG reporting in the Asia Pacific

While the EU has always been a pioneer in ESG reporting, the Asia Pacific region is now catching up in building a more sustainable economy. Asia Pacific countries such as Hong Kong, Australia, Japan, Singapore, Thailand, Taiwan, etc. have already established disclosure and reporting requirements and guidelines. 

In 2019, HKEX took a step ahead toward sustainability by introducing new amendments to tighten ESG regulatory framework, including making at least part of the ESG reporting mandatory for listed companies. This puts Hong Kong in a leading position regarding ESG regulatory and policy governance and disclosure. 

The amendments include a number of significant changes to the regulatory framework for ESG disclosures but most importantly, HKEX amendments aim to put ESG on the board. The idea is to make the boards play a leadership role and be accountable for ESG reporting, imposing a fiduciary duty on the board to engage in developing strategies with respect to ESG, and to get involved in the entire process from oversight to reporting. This can help drive companies to focus more on meeting the treble bottom lines. 

China is also taking steps to achieve sustainability. According to the graph below, it can be seen that there has been a steady increase in the percentage of companies with ESG reports.

Source: Analysis of Wind data

China’s goal to achieve carbon neutrality by 2060 constitutes a move to put a sharper focus on transitioning into a low-carbon economy. In order to catch up with global developments, in 2020, China Securities Regulatory Commission also formulated plans to enforce regulations requiring listed companies to disclose environmental information. 

Hong Kong’s continuous efforts in sustainability reporting

Prior to the new amendments, Hong Kong has been putting in efforts to transition itself into a more sustainable global financial hub. Hong Kong has been an active partnership with Sustainable Stock Exchanges Initiative since 2018. With recent HKEX amendments, Hong Kong is moving upwards in the rankings for sustainability. Moreover, the new requirements are setting new global trends of reporting. The introduction of reporting principles of “materiality” is in line with the principle of reporting climate-related information in EU Non-financial Reporting Directive (NFRD). Also, EU and the UK have long ago adopted the principle of ‘comply and explain’, and HKEX by the latest amendments is upgrading the disclosure obligation to cover all Social KPIs. 

Apart from that, Hong Kong’s financial sector has also been working towards green finance and incorporating ESG into the industry best practices to keep up with global financial market trends. MPFA issued a circular back in 2018 encouraging application of ESG standards into investments and disclosure. The following year, HKMA incorporated ESG factors in its responsible investment measures while Securities and Futures Commission carried out a survey on ESG integration. 

Global cooperation to address challenges

Although ESG reporting is becoming mainstream, we are still at an early stage of the whole sustainability reporting movement. ESG reporting not only focuses on compliance, but also quality that most investors and the public are looking for. For example, according to GRI principles, the quality of data needs to meet a certain standard and have comparability, accuracy, clarity, reliability and timeliness. The complexity of ESG reporting imposes a lot of challenges in terms of effective sustainability disclosure.

In the absence of unified reporting standards, there is a lack of structured base references for companies and investors to benchmark at the global level. Currently, there are varying international reporting standards. Different companies are using different standards in their reporting and the haphazard mix of international frameworks and standards hinders data consistency. Moreover, since there are no global ESG disclosure obligations, we lack a systematic global platform for making ESG data readily available to the public and the investors. The inadequacy of ESG data hinders transparency, reliability, clarity and comparability, making it difficult for companies and investors to compare, analyze and interpret data.

Recognizing this problem, towards the end of 2020, five sustainability standard-setting global organizations, namely CDP, CDSB, GRI, IIRC and SASB announced a shared vision on comprehensive corporate reporting, aiming to provide a globally accepted framework with a coherent standard for providing information to the public in an effective manner. These organisations are collaborating among themselves to slowly take steps for unification of standards. The collaboration between GRI and SASB aims to provide clarity and compatibility, while the collaboration between IFRS and GRI intends to build connectivity between financial and sustainability reporting. 

In a post-COVID world, one can expect to see economies and corporates shifting towards prioritizing sustainability and incorporating ESG in their operations. Although more organizations are now promoting ESG and more ESG-conscious investors are emerging, they are still not enough to drive a strong change in the sustainability reporting ecosystem. Global cooperation is required to bring in a unified, systematic and coherent reporting system on an international platform, while regulations from governments are needed to impose mandatory responsibilities and pressure companies. ESG reporting still has a long way to go. Global big brands are taking the lead in ESG disclosure to influence and raise social awareness, international cooperation and government regulations, and we believe sustainability disclosure will develop into a strong and stable trend all over the world.

The post A unified standard needed to take ESG to the next level appeared first on ESG Reporting and Carbon Advisory in Hong Kong.

2. Increasing investor appetite on corporate sustainability
As the sentiment for responsible investing grows, corporate sustainability has become a major topic of interest for investors across the globe. At the same time, ESG indexes and ratings, such as the FTSE4Good ESG Index, Hang Seng Indexes Corporate Sustainability Index Series, and MSCI ESG Rating, are frequently used by investors as benchmarks for assessing corporate performance. As such, these increasingly ESG-conscious investors are anticipating continuous enhancement of sustainability practices, bringing the issue to the top of the corporate agenda. Moreover, asset owners are not only aware that sustainable investing improves financial returns, but many of them are also focused on non-financial outcomes, as they hope to know that their investments are indeed making a difference and are creating positive impacts for the society. With that said, more ESG activism is also expected from investors. To illustrate, proxy resolutions are often used as tools for active engagement in sustainability investing. In the coming year, corporates should prepare themselves for an increase in filing of social and environmental shareholder resolutions, focusing on topics such as climate change, human rights, human capital investment, diversity in the workplace, and more.

3. COVID-19 sparked greater awareness on social aspects
The United Nations’ Sustainable Development Goals Report 2020 has revealed that the coronavirus pandemic has reversed decades of progress on poverty, healthcare, and education. Amidst the pandemic, it is often the poorest and the most vulnerable parts of population that have been affected the most, with limited access to medical resources and frequent loss of employment. This has magnified the existing social inequality, causing disruption in the progress towards meeting sustainable development goals. Nonetheless, stronger public awareness on corporate social issues has been observed, as stakeholders urged for more social initiatives from the business community during the pandemic. In view of this, the proportion of social bonds issued tripled in 2020, demonstrating the increasing focus on corporate social responsibilities. Meanwhile, creative approaches are also required to address systemic social problems including the widening wealth gap and social inequalities. Therefore, companies should prepare themselves for taking on wider-scoped social initiatives in order to achieve long-term sustainable development.

The post Three Key ESG Trends to Watch in 2021 appeared first on ESG Reporting and Carbon Advisory in Hong Kong.

Established in 2000, GRI is an international independent organization that sets professional standards for assessing and communicating ESG impacts for different categories of organizations. The newly launched sustainability curriculum encapsulates the essentials of a professional sustainability reporting process which includes the application of GRI Standards, stakeholder engagement, materiality assessment, integration of Sustainable Development Goals (SDGs), and the reporting process.

Upon completing the training programme and passing the certification exam, individuals attain a globally recognized qualification – GRI Certified Sustainability Professional, showcasing one’s competence and professionalism in sustainability reporting. In addition to theoretical knowledge, individuals are able to learn practical skills essential for a career in ESG-related fields. The certification also offers practitioners an opportunity for continuous learning and development.  Certified Professionals are required to maintain their qualification through continuous learning, obtaining eight continuing education units (CEUs) annually.

Being certified by GRI gives individuals a competitive edge over their peers. The certification serves as a benchmark for employers to assess both current and prospective employees’ abilities in ESG-related matters, since previously there has not been any commonly recognized metrics for assessing ESG professionals. Having possessed competence in sustainability reporting, GRI-certified ESG talents are able to stand out from the crowd in the pursuit of their career goals.

As Hong Kong and China have been paving the way for sustainable finance, quality disclosure on both narratives and data that complies with the most widely adopted international standards is a must.  GRI has taken the initiative for accelerating acquisition of the requisite qualifications by industry practitioners through its certification program. With enhanced training and development opportunities, sustainability reporting competencies of individuals are expected to grow exponentially, while overall industry standards could also be escalated and brought to the next level.

Check out the GRI Professional Certification Program offered by Alaya Consulting, the GRI Certified Training Partner in both Hong Kong and China.

The post New GRI Certification – Your Pathway to Certified Sustainability Professional appeared first on ESG Reporting and Carbon Advisory in Hong Kong.

Tony Wong, Founder of Alaya Consulting and GRI Nominated Trainer, stated: “The tide of ESG has been turning. The Certification Program could not have come at a better time. In the poll we conducted during our recent webinar, over 80% of the participants said there is a lack of professional certification in the industry. As the GRI Certified Training Partner in both Hong Kong and China, we are excited to offer the Certification Program which is expected to help resolve the talent drought of qualified ESG reporting professionals, and boost the reporting standards of listed companies.”

The full curriculum requires obtaining a total of 5 points, including 3 points from the GRI Standards Certified Training Course, and 1 point each from two courses, namely Sustainability Reporting Process and Integrating SDGs into Corporate Reporting. Obtaining the 5 required points is the prerequisite to enrol for the GRI Certification Online Exam which supersedes the previous GRI Standards Exam. The validity of the Certification Exam expires after one year, individuals can maintain their certification status by taking the minimum learning hours.

Alaya Consulting has become a GRI Certified Training Partner in Hong Kong since 2015 and a GRI Certified Online Training Partner in China since 2020. For the past 5 years, the firm has trained members of company boards of directors, institutional investors, sustainability practitioners, financial communications professionals, graduates who aim to pursue a career in sustainability, as well as other industry practitioners.

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About Alaya Consulting
Alaya Consulting, with offices in Hong Kong and Shenzhen, is a specialist consultancy focusing on ESG disclosure, pre-assurance and GRI certified training. We are the organisers of the Hong Kong ESG Reporting Awards and the first ESG advisory in Asia to receive approval from SBTi for our carbon reduction target. Facing escalating demands for climate change disclosure, Alaya has formulated a suite of climate solutions for establishing governance structure, drawing strategy, aligning with TCFD recommendations, setting up science-based targets and offering energy reduction solutions. For details, please visit here.

Media Contact:
Alaya Consulting Limited / Alaya Consulting (Shenzhen) Limited
Regina Tai / Mia She
Tel: +852 3990 0792 / +86 755 2376 6324
Email: reginatai@alayaconsulting.com.hk / miashe@alayaconsulting.com.hk

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