What are the ESG reporting trends?

It has been found that since the 1992 Rio Earth Summit, the number of sustainability reporting requirements has increased more than 10 fold with now over 1000 reporting requirements introduced by various national bodies, allowing for greater transparency and easier access to quality non-financial information.  

Starting from January 2017, listed companies in Hong Kong were required to disclose their environmental, social and governance (ESG) performance and policy on a basis of comply or explain. Companies are required to disclose their ESG performance through measurable key performance indicators such as targets and achievements, or explain why they have failed to comply.

Although ESG reporting in now increasingly common, investors and stakeholders are seeking for more accurate and comparable data for decision-making, thus the emergence of ESG rating will also provide more valuable information for understanding companies’ ESG risks and opportunities.