GRI Reporting Hong Kong

GRI Reporting in Hong Kong

In Hong Kong’s dynamic business environment, where ESG transparency is a regulatory and strategic imperative, the Global Reporting Initiative (GRI) has emerged as a cornerstone framework for sustainability disclosure. With the HKEX mandating ESG reporting for listed companies and aligning its requirements with global standards like GRI and IFRS S2, organizations must adopt robust reporting practices to meet stakeholder expectations.

Understanding GRI Report and Its 2021 Updates

The GRI Standards, developed by the Global Reporting Initiative, provide a globally recognized framework for organizations to disclose their economic, environmental, and social impacts. In 2021, GRI introduced revised Universal Standards (effective January 2023), enhancing transparency and accountability while integrating critical themes like human rights and materiality assessment. Key updates include:

1. New Reporting Options:
   • “In Accordance With”: Requires full compliance with nine criteria, including materiality determination, disclosure of GRI Topic Standards for material issues, and submission of a GRI Content Index.
   • “With Reference To”: Allows selective use of GRI Standards but mandates a GRI Content Index and notification to GRI.
2. Mandatory Sector Standards:
   Sector-specific standards (e.g., GRI 11 for Oil & Gas, GRI 12 for Coal) became mandatory in 2023, with Agriculture and Fishing sectors following in 2024. These ensure industry-tailored disclosures.
3. Human Rights Integration:
   Human rights disclosures are now embedded in GRI 2 (General Disclosures), moving from an optional standalone topic to a universal requirement.
4. Rearranged Topic Standards:
   The 31 updated Topic Standards eliminate the former Economic (200), Environmental (300), and Social (400) categories, enabling more flexible, impact-focused reporting.

For Hong Kong companies, these updates align with HKEX’s evolving ESG Code, which now mandates climate-related disclosures akin to IFRS S2.

Why GRI Reporting Matters

Hong Kong’s regulatory landscape demands rigorous ESG transparency:

• HKEX Compliance: Listed companies must publish annual ESG reports aligned with financial cycles, disclosing metrics from carbon emissions to anti-corruption measures.
• 2025 Climate Disclosure Deadline: Enhanced climate-related disclosures under HKEX’s ESG Code will require alignment with IFRS S2, focusing on governance, strategy, risk management, and metrics.
• Global Investor Expectations: Over 78% of the world’s largest companies use GRI, making it a trusted framework for attracting international investors.

GRI report not only fulfills regulatory obligations but also strengthens stakeholder trust, mitigates risks, and uncovers opportunities in energy efficiency, sustainable finance, and operational resilience.

Partner for GRI Excellence in Hong Kong

As a GRI Community Member and ISO 9001-certified advisory firm, GreenCo combines local expertise with global insights to guide Hong Kong companies through GRI compliance. Their end-to-end services include:

1. GRI Gap Analysis & Materiality Assessment

GreenCo identifies gaps in current reporting practices and conducts stakeholder engagement workshops to pinpoint material topics—ensuring disclosures align with both GRI Standards and HKEX requirements.

2. Sector-Specific Compliance

For industries like energy, manufacturing, or finance, GreenCo applies mandatory GRI Sector Standards (e.g., GRI 11, 12) to address unique impacts, from carbon-intensive operations to supply chain labor practices.

3. Human Rights & Governance Integration

GreenCo helps embed human rights due diligence into governance frameworks, as required by GRI 2, and crafts policies that resonate with global benchmarks like the UN Guiding Principles.

4. Data Management & Assurance

Leveraging custom ESG data tools, GreenCo streamlines collection of Scope 1-3 emissions, social KPIs, and governance metrics. They also coordinate third-party assurance to enhance report credibility.

5. Climate Risk Alignment with IFRS S2

GreenCo bridges GRI and HKEX requirements by integrating IFRS S2-aligned climate disclosures into GRI reports, including scenario analysis, transition plans, and GHG reduction targets.

GreenCo’s Competitive Edge

• Dedicated Expertise: A team of GRI Certified Professionals, CFAs, and environmental scientists ensures holistic advice.
• Proven Track Record: Successfully delivered 70+ projects for listed companies across Asia, enhancing ESG ratings and award-winning reports.
• Local-Regional Synergy: Deep understanding of HKEX guidelines paired with global framework proficiency (GRI, IFRS, SDGs).

Prepare for 2025 Deadlines

With HKEX’s enhanced climate disclosures effective January 2025, Hong Kong companies must act swiftly to align GRI reporting with evolving requirements. GreenCo’s proactive approach ensures:

• Seamless integration of GRI’s 2021 updates into existing frameworks.
• Compliance with Sector Standards and mandatory human rights disclosures.
• Strategic storytelling that transforms reports into tools for investor engagement.

In a world where sustainability defines competitiveness, GreenCo empowers Hong Kong businesses to turn GRI report from a compliance exercise into a strategic asset. Contact GreenCo today to craft credible, globally recognized disclosures that elevate your ESG performance and resilience.