The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), has published the following updated guidance materials on environmental, social and governance (ESG) reporting:
The launch of the updated guidance materials aims to help issuers better navigate the evolving standards on ESG reporting.
“ESG is a dynamic area. As ESG considerations increasingly move into the mainstream, HKEX, as the market regulator, is committed to ensuring that HKEX’s ESG framework and guidance are up to date with investor and stakeholder expectations,” said Bonnie Y Chan, HKEX’s Head of Listing.
“Following conclusion of the review of our ESG requirements in December 2019, the launch of our latest ESG training and guidance materials reflects our commitment to enhance ESG reporting, and is part of our ongoing efforts in providing training, guidance and resources to assist our issuers in the area.”
To facilitate issuers’ understanding of the amendments (New ESG Requirements) to the Listing Rules and the ESG Reporting Guide (Guide) adopted in the “Consultation Conclusions on Review of the Environmental, Social and Governance Reporting Guide and related Listing Rules” (ESG Conclusions) published in December 2019, the Exchange has launched an e-training course, “Exchange’s New ESG Requirements”, which covers the following six topics:
- Exchange’s new ESG requirements
- Board governance
- Reporting principles and boundary
- Setting targets
- Climate change
- Social KPIs
The e-training takes approximately 60 minutes to complete.
New guide for board and directors
Echoing the key focus of the ESG Conclusions to support and improve the board’s leadership role and accountability in ESG and the governance structure for ESG matters, the Exchange has published a new guide for board and directors titled “Leadership role and accountability in ESG” tailored for directors in understanding and carrying out their roles in ESG reporting under the New ESG Requirements. The new publication contains self-assessment questions for boards and directors to find out where their companies are, and what they should do to set up the governance structure and refine relevant policies or systems for reporting under the New ESG Requirements.
Updated Step-by-step ESG Reporting Guidance
The Exchange has updated its “How to prepare an ESG report” and related appendices to reflect the New ESG Requirements, including adding a new appendix with specific guidance on the calculation of key performance indicators under the “Social” Subject Area of the Guide.
Frequently Asked Questions Series 18
New questions have been added to clarify different aspects of the New ESG Requirements. Where applicable, existing questions were updated to reflect the Guide as amended by the New ESG Requirements.
For additional information, please see the ESG section of the HKEX website.
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.