In light of the increasing focus on Environmental, Social and Governance (ESG) reporting in the business community, Hong Kong Exchanges and Clearing Limited (HKEx) will help equip listed companies with practical tools necessary for reporting through a half-day introductory training seminar and a full-day workshop to be held at several different times between May and July this year.
The Companies Bill gazetted in January this year contains a clause that a business review must include certain ESG matters, such as environmental policies and performance, compliance with the relevant laws and regulations, and key relationships with employees, customers and suppliers and others that have a significant impact on the company.
The half-day introductory training seminar will explain aspects of ESG and the implications for businesses. The full-day workshop will enable participants to understand important ESG issues and key performance indicators that are relevant for reporting. The training seminar and workshop will be conducted by external consultants specialising in ESG reporting.
"As the market regulator, we want to strengthen ESG reporting among listed companies for their own benefit, and also for the benefit of investors,” said Mark Dickens, Head of Listing with HKEx. “Companies that attend the workshop will not only gain a greater understanding of ESG reporting, but will also have an opportunity to influence and shape the forthcoming ESG Reporting Guide.”
HKEx will consult the public on a draft ESG Reporting Guide after the training seminar and workshop, which will be based on the draft Guide. Subject to market comments, HKEx proposes to finalise the Guide which will outline recommended best practices. The long-term vision is to upgrade the reporting requirements to “comply or explain”, which is similar to the Code on Corporate Governance Practices.
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