Hot Topic: Sustainability and ESG in Hong Kong (RID3450)

Corporate sustainability is an umbrella term used to describe the capacity of companies or organizations to maintain long-term productivity and profitability by encompassing opportunities and managing risks resulting from economic, environmental, and social developments. ESG is a management framework for measuring the sustainability and society impact of an investment on a company that determine the future financial performance. Being sustainable means actively pursue ESG goals such as responsible use of natural resources or respect social rights in own operations and in the client markets. The UN 17 SDGs also offer a practical framework that map sector and company specific ESG considerations with thematic focuses, as well bring a global consensus on pressing social and environmental challenges to gauge the impact of ESG investment strategies.

Studies have shown that funds that Integrate ESG deliberations experience a greater level of growth than the ones that do not put ESG into consideration. The Stock Exchange of Hong Kong Limited has been working closely with the Securities and Futures Commission (SFC) that would bring experts together to discuss environmental and climate risk matters and how it affects sustainable finance.