BDO ESG Awards to place the highlight on trade greatest apply, recognising firms striving to achieve internet zero

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Local weather change is without doubt one of the most urgent challenges going through the world at present. The necessity to scale back carbon emissions was excessive on the agenda on the current assembly of world leaders on the G7 Summit in Japan, with the heads of the biggest economies reaffirming their dedication to decarbonising the vitality sector by 2035. China, the world’s largest client of vitality and major emitter of carbon, has additionally pledged to change into carbon impartial by 2060.

Governments world wide have set goal dates to be carbon impartial, with Hong Kong aiming to change into internet zero by 2050. And whereas companies have an vital function to play in serving to to fulfill these targets, it’s important they incorporate environmental, social and governance (ESG) components into their operations to assist future-proof their enterprise.

“Challenges on local weather change, mixed with better social consciousness, have pushed enterprises to undertake ESG components into enterprise methods and show their utmost effort in making the world greener,” says Ricky Cheng, director and head of threat advisory at BDO in Hong Kong.

ESG topping the agenda

BDO, the world’s fifth largest accounting and advisory community, has lengthy been an advocate of sustainability. It not solely incorporates ESG components into its personal operations but in addition assists firms with ESG reporting and threat administration.

Its newest annual ESG reporting efficiency survey discovered ESG is shifting up the company agenda of Hong Kong-listed firms, with 60 per cent of boards now having direct oversight for sustainability, up from 54 per cent the earlier yr. It additionally revealed 48 per cent of firms surveyed are making progress in setting measurable environmental and emission targets, in contrast with simply 15 per cent beforehand.

However there are nonetheless important gaps, and Hong Kong-listed firms have been gradual to answer modifications in Hong Kong Exchanges and Clearing’s (HKEX) revised Environmental, Social and Governance Reporting Information by way of disclosing related, clear and high-quality climate-related data and the ensuing monetary impacts. In the meantime, simply 10 per cent of firms listed in Hong Kong have impartial assurance for his or her ESG disclosures.

Driving change

To assist promote ESG excellence and share greatest practices, BDO runs the annual BDO ESG Awards. Now in its fifth yr, the programme recognises Hong Kong-listed firms which have made a constructive impression within the areas of ESG and carried out excellent sustainability initiatives. The awards had been the primary in Hong Kong to encourage firms to be extra conscious of their duty to include sustainability into their enterprise mannequin.

“With a purpose to sort out speedy international warming on Earth, enterprises ought to discharge their company duty to undertake carbon discount options and show their utmost effort in lowering greenhouse fuel emissions generated from their enterprise actions, striving to realize a long-term net-zero carbon emission enterprise mannequin,” Cheng explains.

Alongside the awards’ three major classes of Greatest in ESG; Greatest in Reporting; and ESG Report of the 12 months, the 2023 awards will embody a particular Theme award. It will recognise the corporate that has achieved the largest discount in carbon emissions through the yr, in each absolute phrases and depth. The award may also recognise the most effective carbon discount initiative launched through the yr with the potential to considerably scale back the enterprise’ carbon emissions in the long term. As well as, the judging panel of trade consultants will search for essentially the most compelling long-term imaginative and prescient and motion plan to realize carbon neutrality.

This yr’s awards may also have a brand new class: Excellent ESG Efficiency of H-share firms, to recognise the achievements of mainland Chinese language firms listed in Hong Kong in ESG and its reporting.

“With harder ESG disclosure requirements required from the regulators and rising consciousness from the market, ESG is not only about options to sort out dangers and challenges, but in addition methods to create long-term worth for stakeholders and traders,” Cheng says. “Coming to the fifth yr of the BDO ESG Awards, BDO will proceed pushing ESG engagement and additional strengthening the place of Hong Kong as a world monetary centre and main inexperienced hub.”

This text was initially printed by scmp.com. Learn the unique article right here.