In recent years, many enterprises have successively invested in ESG projects. It not only allows them to fulfil their social responsibilities by creating a better environment for the next generations, but also benefits the enterprises themselves. This includes creating a more positive corporate image and richer investment opportunities. By promoting sustainable development as a premise for business operations, these companies are making the future more ideal.
ESG in Hong Kong
The term "ESG" represents "Environment", "Social" and "Governance", and first appeared in the 2004 UN Global Compact's report "Who Cares Wins”. Nowadays, international and local ESG rating companies like FTSE Russell have developed a mature investment rating system to assess a company's ESG performance. They gathered data from corporate disclosures, government databases, media reports, and NGOs to classify ESG companies into seven grades, ranging from the highest 'AAA' to the lowest 'CCC'.
According to the latest survey by the Hong Kong Trade Development Council in October 2023, most of the respondents agreed that Hong Kong is ready to develop ESG business. Non-local respondents were more satisfied with Hong Kong's ESG performance than local respondents. Apart from the local ESG advantages, the Hong Kong government’s current and future strategies have also contributed to making Hong Kong an ideal platform for sustainable development investment, services, and procurement.
Examples and benefits of ESG
The concept of ESG emphasises that businesses should not only pursue profit but strive to consider various social aspects in their daily operations, fulfilling their social responsibilities and civic duties, which include promoting sustainable development, social equality and diversity. Taking Hong Kong as an example, the government has set several ESG development blueprints, including the "Hong Kong Climate Action Blueprint 2050," the "Hong Kong Clean Air Blueprint 2035," and the "Hong Kong Resource Circulation Blueprint 2035," along with the "Environmental, Social and Governance Reporting Guide" specifically for listed companies, to promote the local development of the ESG ecosystem. Meanwhile, private sectors have also launched numerous programmes in response to government policies.
Where Can ESG Be Applied?
- Energy management, such as controlling energy consumption
- Reducing local and accidental pollution
- Protecting biodiversity
- Environmental services and initiatives
- Product packaging and usage
- Ensuring employee well-being
- Promoting social diversity and inclusion
- Maintaining good community relations
- Providing career management and training
- Monitoring environmental measures of suppliers
- Ensuring data and information security
- Opposing corruption and avoiding anti-competitive behaviour
- Responsibly disclosing information
ESG and Technology Innovation
Developing new technologies not only improves the quality of life for the general public but also motivates companies to embrace ESG principles and a lower-carbon sustainable development policies. For instance, a study by the Hong Kong Trade Development Council showed that greenhouse gas emissions in the electronics industry account for up to 4% of the global total. It showed that adopting new technologies is crucial for reducing carbon emissions and pollution in the manufacturing industry.
HKT provides a diverse range of eco-friendly solutions for businesses, including Smart Building Eco-systems, AI Building Energy Control, Power optimisation, and Solar Energy Solutions. We safeguard your energy efficiency, ensuring comprehensive energy management optimisation and helping you uncover additional opportunities. Reach out to us to learn more and discover how we can assist you today.
Our Energy Management and PropTech include:
1. Patented 4th generation Quantum Optimisation Device – Reduces energy consumption by reducing the friction and heat emission between electrons in residential and commercial buildings energy networks.
2. AI Building Energy Control – Utilises energy with HKT’s AI-driven remote control systems and customised solutions.
3. One-stop Solar Power Solution - Not limited to one-off engineering services, but also deliver solar harvest simulations, and can be used to apply for Feed-in Tariff (FiT) schemes and the associated safety certification.
4. Smart Building Solutions – industry-leading connectivity services which help you to enable smart building services, including building related analytics, Unmanned management, and Health & Safety areas.