GreenCo Helps You Navigate the Climate Disclosure Journey (Part 1)
As stated in the Consultation Paper published on 14 April 2023, the Hong Kong Exchange proposes to mandate all issuers to make climate-related disclosures in their ESG reports, and introduce new climate-related disclosure requirements aligned with the International Sustainability Standards Board (ISSB) Climate Standard with the effective date of 1 January 2024. For highlights related to the consultation paper, you may refer to the page https://greenco-esg.com/esg-reporting-hong-kong-exchange/.
Complying with the new requirements is not an easy task and requires early preparation. For instance, companies should understand their own value chain and develop their Scope 3 emission inventory accordingly, while they should also apply scenario analysis to examine their climate resilience and implement a transition plan to address the risks and opportunities identified. The process, from preparation all the way to data processing and reporting, can be overwhelming and complicated for most of the companies.
Given our rich experience in preparing climate-related disclosures for our clients, our professional team can assist companies in navigating the climate-related disclosure journey by providing tailored services depending on your disclosure readiness and experience, adopting a Phased Approach.
In the beginning phase (Phase 1), we strive to help companies develop a solid foundation for climate-related disclosure.
We assist companies in reviewing their performance and identifying areas for improvement in accordance with the updated disclosure requirement. This enables companies to assess their compliance level and address any missing information effectively.
We offer training to assist companies in familiarising themselves with the updated climate-related disclosure requirements and ensuring compliance. As these requirements continue to evolve, we closely monitor the changes and promptly inform companies of any updates. To cater to the diverse needs of companies, we provide both online and face-to-face training options.
We help companies identify material climate-related risks and opportunities through customised risk management tools and stakeholder engagement activities. Additionally, we support companies in developing climate-related models using their operational data and critical assumptions, which enables companies to better estimate the risks and opportunities.
For companies that have already set targets, we offer assistance in tracking their progress and updating their targets accordingly, enabling them to continually improve and strive for greater achievements.
Transitioning towards sustainability and a low-carbon economy requires a step-by-step approach. As part of this process, we assist companies in developing comprehensive transition plans that demonstrate their commitment and efforts. These plans outline how companies will transform their existing assets, operations, and business models to adapt to climate change. Specifically, we customise the transition plan based on each company’s experience and targets, aiming to achieve the best possible results.
For more information on Phase 2, which involves more in-depth preparation, please refer to another post. We encourage companies to adopt both Phase 1 and Phase 2 to get ready earlier for the new mandatory climate-related disclosures.