Unveiling ESG Disclosure Trends in Hong Kong

Oct 4 / ESG Matters
In September 2024, ESG Matters released its 2024 Matters Collection. This comprehensive report delves into the latest climate disclosure trends among Hong Kong's listed companies, providing a detailed analysis of the Hang Seng Index (HSI) and its primary sectors of companies.

The 2024 Matters Collection offers valuable insights into the progress of Hong Kong's listed companies towards achieving Net-Zero emissions and their adoption of various reporting frameworks. Here are some key highlights:
Strong Commitment to Net-Zero
The report reveals that a significant majority (82.9%) of HSI companies have pledged to achieve Net-Zero emissions by 2050, demonstrating a strong commitment to sustainability. This commitment is particularly evident in the properties, and utilities sectors, with 100% of companies in these sectors making Net-Zero pledges.

Embracing Reporting Frameworks
The adoption of internationally recognized reporting frameworks, such as the Task Force on Climate-Related Financial Disclosures (TCFD), Sustainable Development Goals (SDGs), and ISO standards, is widespread. Companies are increasingly embracing multiple frameworks to enhance investor communication and risk management.
Transparency and Accountability
The report highlights a significant increase in the adoption of third-party verification for ESG data. This trend indicates a growing dedication to transparency and accountability, ensuring that companies' sustainability claims are credible and verifiable.

GHG Emissions Disclosure 
While Scope 1 and Scope 2 emissions are consistently disclosed across all sectors, the report identifies a substantial transparency gap in Scope 3 emissions, particularly within the C&I sector. This gap highlights the need for enhanced data collection and reporting practices to provide a more comprehensive understanding of companies' environmental impact.
Sector-Specific Insights
The report provides detailed analysis of climate disclosure trends across key sectors, including finance, utilities, properties, and C&I. These insights offer valuable benchmarks for companies to assess their progress and identify areas for improvement.

The 2024 Matters Collection serves as a valuable roadmap for companies to navigate the evolving landscape of climate disclosure and sustainability reporting. ESG Matters encourages companies to:

  • Strengthen their Net-Zero commitments: Develop comprehensive plans to achieve their targets and regularly report on their progress.
  • Embrace third-party verification: Seek independent verification of their ESG data to enhance credibility and build trust with stakeholders.
  • Improve Scope 3 emissions disclosure: Enhance data collection and reporting practices to provide a more comprehensive understanding of their environmental impact.

While significant strides are being made, the report emphasizes the need for continued improvement, particularly in the area of Scope 3 emissions disclosure. By embracing transparency, accountability, and continuous improvement, Hong Kong's listed companies can continue to lead the way in driving positive change and building a more sustainable economy.

The 2024 Matters Collection offers a valuable snapshot of Hong Kong's progress towards a sustainable future, showcasing the commitment of listed companies to Net-Zero goals and the adoption of reporting frameworks. To access the full 2024 Matters Collection and gain deeper insights into these trends:

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Matters Collection by ESG Matters provides easy access and analysis to the latest annual ESG reports published by firms across four main sectors listed in the Hang Seng index.

The collection contains an array of the latest Environmental, Social, Governance (ESG), Corporate Social Responsibility (CSR) and Sustainability reports.