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Big Four accounting firms expand ESG hiring in Hong Kong, mainland China as tougher regulatory compliance exposes deficit in talent

  • Deloitte, EY, KPMG and PwC are boosting their ESG teams by hiring, lateral acquisition and upskilling to meet growing demand from clients facing tougher reporting rules
  • Industry faces talent gaps as bourses embrace climate-change agenda and push for sustainability becomes front and centre in global investing

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Most exchanges have imposed tougher regulatory reporting and compliance in environmental, social and governance standards to beat climate change. Photo: Shutterstock
Martin Choi
The Big Four accounting firms are stepping up their staff recruitment for environmental, social and governance (ESG) services teams in Hong Kong and mainland China, following growing demand for regulatory compliance from clients, executives said.

Deloitte has more than doubled the size of its ESG team in Hong Kong and plans to maintain the momentum, while EY is aiming to triple the size of its Greater China team of over 200 staff over the next three years. PwC has doubled its team since mid-2020, while KPMG China has boosted its 300-strong unit through “lateral talent acquisition.”

Current ESG regulatory trends have driven listed companies across all industries to reduce their carbon footprints and the effects their overall operations have on climate change. The Hong Kong bourse requires the filing of annual ESG reports, while China’s securities regulator has called for mandatory disclosures to include environmental violation penalties, among others.
Current rules also require listed companies to add ESG factors to the financial metrics of their business operations and consider strategic and capital allocation decisions.

“Our clients are starting to request beyond traditional reporting, and solutions that can support and drive their businesses to be less carbon intensive and more sustainable in the long-run,” said Melissa Fung, risk advisory leader in the southern region at Deloitte China. There is a shortage of people with experience in environmental science, risk modelling and engineering, she added.

China overtook the US as the second-largest market for climate-related funds in 2021, according to Morningstar, when the funds grew their assets by 149 per cent to US$46.7 billion from a year ago. The size of the US market expanded 45 per cent to US$31 billion. The rest of the world had US$6.3 billion, twice from a year earlier.

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