1. Growing board involvement in ESG management<\/b>
\nSince July 2020, the Hong Kong Exchanges and Clearing Limited (HKEX) has implemented a series of amendments to its ESG Reporting Guide and related Listing Rules. This reflects HKEX\u2019s commitment to enhance the ESG regulatory framework in Hong Kong, so as to keep abreast with higher international standards. Under the new disclosure guide, it is now mandatory for listed companies to include a board statement that discloses the board\u2019s consideration of ESG matters in the company\u2019s sustainability report. In response to this, the board must step up its act in understanding ESG impacts of the company\u2019s business strategies and activities, while cultivating greater competence for managing sustainability issues. In short, board involvement is expected to deepen in respect of all facets of corporate ESG management; from supervising the target setting progress, to monitoring ESG-related risks and opportunities, the board\u2019s role is fundamental and indispensable in inspiring positive changes.<\/p>\n
2. Increasing investor appetite on corporate sustainability<\/b>
\nAs 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.<\/p>\n
3. COVID-19 sparked greater awareness on social aspects<\/b>
\nThe United Nations\u2019 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.<\/p>\n","protected":false},"excerpt":{"rendered":"
1. Growing board involvement in ESG management Since July 2020, the Hong Kong Exchanges and Clearing Limited (HKEX) has implemented a series of amendments to its ESG Reporting Guide and related Listing Rules. This reflects HKEX\u2019s commitment to enhance the ESG regulatory framework in Hong Kong, so as to keep abreast with higher international standards. […]<\/p>\n","protected":false},"author":1,"featured_media":5278,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n