Page 52 - 2023 White Paper on the Business Environment in China
P. 52
3 White Paper on the Business Environment in China
1.3 ESG development and prospects
of key industries in the Guangdong-
Hong Kong-Macau Greater Bay Area
* Courtesy of EY
ESG driving force and devel- resources will be directed towards the region's
opment in the Greater Bay sustainable development, thereby creating
Area growth and opportunities in ESG and green and
sustainable finance.
Government policies promote ESG
development Regulatory bodies tighten ESG
disclosure requirements
Environmental, social and governance (ESG)
and climate change are gaining global attention, Regulatory bodies in the GBA are stepping up
and it is no exception for the Chinese mainland on their ESG disclosure requirements, mandating
and Greater Bay Area (GBA) are no exception. In more comprehensive ESG and climate change
its 14th Five-Year Plan and Long-Range Objectives reporting. Published by the Hong Kong Stock
Through the Year 2035, the Central Government Exchange (HKEX), the updated ESG Reporting
has made it clear that it supports the development Guide for listed companies came into effect
of green finance in the country1. Specifically, at the on 1 July 2020, requiring listed companies
conference on the 14th Five-Year Plan, the Central to publish a board statement on ESG and to
Government emphasized its commitment to making provide enhanced disclosure of environmental
Hong Kong a green finance center in the GBA. targets, climate-related issues and social key
performance indicators (KPIs).
The Hong Kong Special Administrative Region
(HKSAR) Government is also eager to promote In December 2021, the HKEX went further and
Hong Kong as a premier financing platform revised its Corporate Governance (CG) Code to
for governments and green enterprises in the require ESG reports to be published alongside
mainland and around the globe. Its plan to annual reports, starting in fiscal year 20222.
achieve this objective was stated in its Policy The HKEX also issued a Guidance on Climate
Address 2022, where it was announced that the Disclosures in 2021 to help issuers align with the
Council for Sustainable Development will be Task Force on Climate-related Financial Disclosures
reorganized into the new Council for Carbon (TCFD) recommendations. This mandatory
Neutrality and Sustainable Development. The disclosure will be rolled out across relevant
new Council will advise on decarbonization sectors by 2025. The Cross-Agency Steering Group,
strategies and support sustainable development co-chaired by the Hong Kong Monetary Authority
and decarbonization efforts. (HKMA) and Securities and Futures Commission
(SFC), has also announced similar plans for 2025
With sustainable development being a across relevant sectors3.
strategic priority for the GBA, significant
2 HKEX, https://www.hkex.com.hk/News/Regu-
1 中华人民共和国国民经济和社会发展第十 latory-Announcements/2021/211210news?sc_lang=en
四个五年规划和2035年远景目标纲要 p.96, https:// 3 HKMA, https://www.hkma.gov.hk/eng/news-
www.ndrc.gov.cn/xxgk/zcfb/ghwb/202103/ and-media/press-releases/2021/07/20210715-4/
P020210323538797779059.pdf
52
1.3 ESG development and prospects
of key industries in the Guangdong-
Hong Kong-Macau Greater Bay Area
* Courtesy of EY
ESG driving force and devel- resources will be directed towards the region's
opment in the Greater Bay sustainable development, thereby creating
Area growth and opportunities in ESG and green and
sustainable finance.
Government policies promote ESG
development Regulatory bodies tighten ESG
disclosure requirements
Environmental, social and governance (ESG)
and climate change are gaining global attention, Regulatory bodies in the GBA are stepping up
and it is no exception for the Chinese mainland on their ESG disclosure requirements, mandating
and Greater Bay Area (GBA) are no exception. In more comprehensive ESG and climate change
its 14th Five-Year Plan and Long-Range Objectives reporting. Published by the Hong Kong Stock
Through the Year 2035, the Central Government Exchange (HKEX), the updated ESG Reporting
has made it clear that it supports the development Guide for listed companies came into effect
of green finance in the country1. Specifically, at the on 1 July 2020, requiring listed companies
conference on the 14th Five-Year Plan, the Central to publish a board statement on ESG and to
Government emphasized its commitment to making provide enhanced disclosure of environmental
Hong Kong a green finance center in the GBA. targets, climate-related issues and social key
performance indicators (KPIs).
The Hong Kong Special Administrative Region
(HKSAR) Government is also eager to promote In December 2021, the HKEX went further and
Hong Kong as a premier financing platform revised its Corporate Governance (CG) Code to
for governments and green enterprises in the require ESG reports to be published alongside
mainland and around the globe. Its plan to annual reports, starting in fiscal year 20222.
achieve this objective was stated in its Policy The HKEX also issued a Guidance on Climate
Address 2022, where it was announced that the Disclosures in 2021 to help issuers align with the
Council for Sustainable Development will be Task Force on Climate-related Financial Disclosures
reorganized into the new Council for Carbon (TCFD) recommendations. This mandatory
Neutrality and Sustainable Development. The disclosure will be rolled out across relevant
new Council will advise on decarbonization sectors by 2025. The Cross-Agency Steering Group,
strategies and support sustainable development co-chaired by the Hong Kong Monetary Authority
and decarbonization efforts. (HKMA) and Securities and Futures Commission
(SFC), has also announced similar plans for 2025
With sustainable development being a across relevant sectors3.
strategic priority for the GBA, significant
2 HKEX, https://www.hkex.com.hk/News/Regu-
1 中华人民共和国国民经济和社会发展第十 latory-Announcements/2021/211210news?sc_lang=en
四个五年规划和2035年远景目标纲要 p.96, https:// 3 HKMA, https://www.hkma.gov.hk/eng/news-
www.ndrc.gov.cn/xxgk/zcfb/ghwb/202103/ and-media/press-releases/2021/07/20210715-4/
P020210323538797779059.pdf
52
