Author：Mingmin Zhang Oct 17, 2023 09:22 PM (GMT+8)

On October 12, PwC released the "ESG Reporting Study for Hong Kong Listed Companies 2023", indicating that ESG disclosures of companies listed in Hong Kong, China are becoming increasingly comprehensive. There's a heightened focus on enhancing ESG management, committed to long-term sustainable development, receiving growing attention from companies, investors, and regulatory bodies.

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ESG Reporting Study for Hong Kong Listed Companies 2023 integrates the 2021 version of "Environmental, Social and Governance Reporting Guide", Hong Kong Exchanges and Clearing Limited (HKEX)"consultation paper on Enhancement of Climate-related Disclosures Under the Environmental, Social and Governance Framework", and other latest documents related to ESG. The study selected 300 listed companies in Hong Kong, who had published their ESG reports for the fiscal year 2022, classified according to the Hang Seng industry classification system's 12 primary sectors. The in-depth research analyzed ESG report disclosures, mandatory disclosure requirements, management and disclosure in environmental and social categories, aiming to provide insights and reference for ESG practices, management, and disclosure for companies listed or planning to list in Hong Kong.

Yu Jiewen, the director and partner in charge of ESG Sustainable Development Disclosure and Management Consulting at PwC China, said, "The research found that companies listed in Hong Kong are paying increasing attention to ESG management and disclosure. Under the current HKEX disclosure requirements, the structure and content of most ESG reports have become more refined. Against the backdrop of heightened regulatory requirements, Hong Kong listed companies might consider offering richer ESG information to investors and stakeholders. ESG reporting will aid the ESG practices of Hong Kong listed companies, integrating ESG topics into overall corporate objectives and strategies, realizing the sustainable development value of enterprises."

Based on the research results, in terms of disclosure level, all topics in the ESG Reporting Guide in the sample companies' ESG reports tend to mature, with the completeness of ESG disclosures by listed companies increasingly improved. Among them, the maturity of social category topic disclosures reached as high as 90%. Han Tingcun, partner of ESG Sustainable Development Disclosure and Management Consulting at PwC China, commented, "The improved quality of topic disclosure demonstrates that ESG disclosures of Hong Kong listed companies have surpassed basic compliance requirements, moving towards higher ESG management objectives, more systematic ESG governance, deeper ESG management, and superior ESG performance."