The negative impact of climate change on various business is already having critical effects in many corporate and government sectors, and the environmental, social, and governance (ESG) risks would become highly relevant to investors for making investment decisions.
Under the Listing Rules of HKEX, issuers must issue an ESG report (whether as part of their annual reports or in separate ESG reports) on an annual basis and regarding the same period covered in their annual reports. In order to make life easier for SMEs and other organizations which are not familar with ESG reporting, we have created the following fundamental course for them to get the general understanding of climate change related risks, sustainable development goals, ESG disclosure benefits, HKEX ESG reporting guidelines / rules etc
ESG Reporting 101 (total 8 modules)
Module 1 – Introduction of sustainability and its related issues, including trends, impact, and perspectives. •Defining Sustainability and Sustainable Development •The greatest sustainability challenge •The availability and ownership of natural resources •Critical action to protect common resources •Economic model Donut Economics
Module 2 – Key environmental sustainability trends, impact and regulations. •Climate Change : Greenhouse Effect •Atmospheric Ozone •Toxins in the Environment •Decline of Natural Capital •Unsuitable water use
Module 3 – Key social sustainability trends, impact and regulations. •Child and Slave Labor •Basic human rights •Workplace Health and Safety •Employee Engagement and Work-Life Balance •Ethical Sourcing and Fair Trade (Supplier) •Engaging Future Generations
Module 4 – Global sustainability frameworks and policies. •The UN 17 Sustainable Development Goals (SDGs) •SDG 6 – Ensure availability and sustainable management of water and sanitation for all •SDG 7 – Ensure access to affordable, reliable, sustainable and modern energy for all •SDG 13 – Take urgent action to combat climate change and its impacts •SDG 14 – Conserve and sustainably use the oceans, seas, and marine resources for sustainable development •SDG 15 – Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
Module 5 – Introduction of HKEX ESG reporting. •The meaning of ESG •The Board involvement in ESG governance •The reason of ESG reporting •Key details on ESG reporting •ESG disclosure by IPO applicants
Module 6 – Overview of HKEX’s new ESG requirement. •HKEX’s new requirement on climate change •Revision to environmental KPI •Revision to social KPI •The board’s responsibility on social risks •The board’s responsibility on climate-related risks •How to set targets
Module 7 – Key benefits on ESG reporting •Business & Financial benefits •Risk-avoidance benefits •Purpose and fulfillment benefits •Environmental & social impacts •Compliance reporting and transparency
Module 8 – Best practice ESG reports (Case sharing)
