Asia’s slow ESG adoption lags further in the latest response from Hong Kong’s chamber of listed companies claiming that new disclosure requirements are «quite heavy and cumbersome».
The Hong Kong Exchanges and Clearings (HKEX) proposed that companies be required to disclose environmental, social and governance-related (ESG) risks in a statement earlier this year and since then, companies have signaled reluctance.
«Too many additional commitments will create complementary challenges,» said Mike Wong, chief of the chamber of Hong Kong-listed companies, according to a recent «Financial Times» report. «The additional disclosure requirements are quite heavy and cumbersome.»
«No apparent value»
One of the major focal points in the proposed ESG disclosure is climate-related risks such as greenhouse emissions which HKEX said it hoped to implement next year.
The chamber highlighted that while some companies already exceed the proposed disclosure requirements such as local utility companies CLP Group, others should have discretion in determining the value of disclosing such matters at all.
Companies should no be «pushed to reveal something that has no apparent value to them,» the chamber said.
In May this year, HKEX attempted to further the development of ESG reporting by listed companies to «echo the increasing international focus on climate change and its impact on business».
«This consultation reflects the Exchange’s commitment to enhance ESG reporting and disclosure by listed companies, and builds upon its ongoing ESG-related efforts since the launch of the ESG Reporting Guide in 2013,» said David Graham, HKEX’s head of listing in the aforementioned statement.
