HKEx now encourage listed issuers to commence reporting in accordance with TCFD recommendations soonest, getting prepared towards mandatory TCFD-aligned climate related disclosures by 2025. It is no doubt that issuers must be prepared for putting stronger effort to satisfy the society and financial market’s increasing expectation on ESG data and reporting requirements.
In the latest HKEx’s listing rule requirements, there are 13 environmental KPIs and 23 social KPIs. In addition, listed companies should maintain various ESG policies in various aspect that should be disclosed. With effect from July 2020, HKEX’s ESG Reporting Guide has been amended to incorporate elements of the TCFD recommendations such as requiring board’s oversight of ESG matters.
Some disclosures such as greenhouse gas emissions involve a lot of data behind given various sources of emissions for scope 1 and scope 2 emissions are usually involved. Imagine an enterprise group operates business in Mainland China with 20 sites, Hong Kong with 3 sites and Singapore with two sites, the underlying work in organising and consolidating data for calculating merely scope 1 emission is highly challenging. As ESG consultant, we see a lot of companies face the problem of inconsistencies with their data. Common issues include inconsistencies of units for the same emission source, human errors in inputs and missing data for specific source. Significant amount of time costs have been spent to consolidate, fix and organise data in order to complete the KPI disclosure of reasonable level of accuracy.
The demand for ESG investment is definitely growly quickly and more fund managers consider ESG factors and performance in making investment decisions. Policymakers are responding to the market expectation on more transparent and quality ESG data disclosures. One example is that the policymakers in some markets like Hong Kong and Singapore now encourage enterprises to conduct internal and external audits on their ESG disclosures. It is an inevitable trend for business to spend more resources on managing its ESG KPIs in an more organised and reliable ways.
We work hard to bring in solutions that help our clients in solving the pain points and add further value in ESG data collection. GreenCo’s ESG data collection portal solution will largely help the ESG team of enterprieses to handle ESG data collection, progress tracking and data organisation in a more efficient way.
Wish to learn more about how we can achieve these? Inquire using the tool below and we will arrange a demo whenever possible.