【Hong Kong Stock Exchange Published Amendments to the ESG Reporting Guide】How Companies Can Improve their ESG Governance？
【Hong Kong Stock Exchange Published Amendments to the ESG Reporting Guide】How Companies Can Improve their ESG Governance？
An increasing number of countries and regions are incorporating ESG information disclosure requirements within regulatory systems, and increasing disclosure requirements and regulatory oversight. For companies, solely establishing an ESG governance framework is insufficient to fully meet management requirements and investors’ increasing appetite for information, and should strive to build upon this framework with appropriate and effective ESG risk management and internal control systems.
The imperative for companies to take action is compounded by the fact that, for the first time in history, the top five risks rated (in terms of their likelihood) by the World Economic Forum in its 2020 Risk Report have been categorised as “Environmental Risks”, within which climate has topped the risk agenda. Steps for strengthening ESG governance involve：
1) conducting background research;
2) strengthening management’s understanding of ESG issues;
3) developing and refining an ESG governance structure;
4) designating ESG responsibilities and ownership;
4) devising and implementing ESG policies; and
5) reporting and overseeing ESG issues.
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