Too few of Hong Kong’s listed companies treat sustainability reporting seriously, claims leading advisory agency
CSR Asia, which creates and monitors sustainability strategies, says only around 60 of city’s 2,000 listed companies consider it a strategic necessity
Hong Kong-listed firms, which will be subject to more stringent reporting requirement on their environment, social and governance (ESG) performance next year, should treat the exercise as part of their long term business strategy rather than a once-a-year box-ticking exercise, according to sustainability reporting experts, CSR Asia.
But still too few firms seem to appreciate the benefits of being environmentally and socially responsible in terms of brand and reputation enhancement, t hey add.
Richard Welford, chairman of CSR, which helps companies create and monitor their sustainability strategies, said he believes just 50 to 60 of Hong Kong’s nearly 2,000 listed companies – essentially the Hang Seng Index constituents – consider sustainability a strategic necessity.
The majority of the rest, he fears, will choose to spend the minimum time and money to meet the new requirements by the stock exchange, adding many firms are likely to cite resource constraints as an excuse.
“What worries me is that some of the smaller companies are doing this just as a [box ticking] exercise,” he told the South China Morning Post in an interview.
“They don’t see the bigger picture of why this is good for business and the strategic advantage ... whereas the companies that have been doing this for a while realise this is part of their strategy, brand and reputation.”
