ESG: the turning of the tide?

摘要

Seven years after first implementing its ESG Reporting Guide, Hong Kong Exchanges and Clearing Ltd (HKEX) has made a bold, yet much anticipated, step to raise ESG disclosure requirements for issuers in Hong Kong. In May 2019, HKEX published a consultation paper entitled 'Review of the Environmental, Social and Governance (ESG) Reporting Guide and Related Listing Rules'. The key focus of the consultation was to emphasise the board's leadership role and accountability in ESG matters. On 18 December 2019, HKEX published its conclusions to the consultation, announcing that it will implement the new requirements proposed by the consultation, with modifications reflecting comments received, effective for financial years commencing on or after 1 July 2020 (see Hong Kong's new ESG regime). The new requirements will significantly improve Hong Kong's regulatory framework for ESG governance and disclosure and position the Hong Kong bourse as a pioneer in driving ESG disclosure in Asia.