Almost 80pc HK companies monitor ESG principles implementation

Nearly 80 percent of companies in the city have established sustainable development committees to monitor the implementation of environmental, social, and governance principles, according to a report co-compiled by Ernst & Young Global.

This figure means that the board and senior management are placing greater emphasis on ESG issues.

Sixty-one percent of companies have integrated sustainability risks into their corporate risk management frameworks, showing that these risks are now being addressed alongside other critical risks through more comprehensive mechanisms.

However, only 17 percent of companies take sustainability opportunities into account when evaluating risks and shaping business strategies.

Managing Partner at Ernst & Young, Hong Kong and Macau, Jasmine Lee Shun-yi said an increasing number of companies are forming sustainability committees within their boards, signaling a shift in corporate governance in Hong Kong and highlighting businesses’ growing commitment to ESG.