The upgrade of the key performance indicators (KPIs) in “Subject Area A. Environmental” from “recommended” to “comply or explain” will come into effect for issuers’ financial years beginning on or after 1 January 2017 under the ESG Reporting Guide raised by HKEx.
On 18 December 2019, The Stock Exchange of Hong Kong Limited (the Exchange) published the conclusions to its consultation on the ‘Review of the Environmental, Social and Governance (ESG) Reporting Guide (ESG Guide) and Related Listing Rules’ (ESG Consultation Conclusions), making revisions on the content of existing ‘Listing Rules’ and the ‘ESG Guide’. The amendments will apply to issuers’ ESG reports for financial years commencing on or after 1 July 2020.
The focuses of this revision by the Exchange were mainly on building the corporate ESG framework, mandating the disclosure of the role the Board plays in its engagement in ESG risks management, encouraging the exploration of the links between climate change and corporate sustainable development, and furthering the application of the principle of Materiality in the disclosure of ESG performance and report preparation.
We have years of experience in providing corporate and consultancy services. With the solid practical experience in advising on the latest sustainability trends and developments, we had already provided a range of services on ESG Reporting to Hong Kong and Singapore listed companies, including: