• Information about HKEX’s efforts in promoting sustainable development of the marketplace is available in its annual Corporate Social Responsibility reports and the Corporate Social Responsibility section of the HKEX Group website.

Issuers must publish their ESG reports on an annual basis and regarding the same period covered in their annual reports. Reporting requirements can be found in the related Main Board Listing Rules (here) and the ESG Reporting Guide (the “Guide”), Appendix 27 to the Main Board Listing Rules (here).

Following the consultation on the ‘Review of the ESG Reporting and Related Listing Rules’, the revised Guide, effective on 1 July 2020, comprises two levels of disclosure obligations: (a) mandatory disclosure requirements; and (b) “comply or explain” provisions. Issuers must disclose the information required under the “Mandatory Disclosure Requirements”; and if the issuer does not report on any of the “comply or explain” provisions, it must provide considered reasons in its ESG report. The amendments had an emphasis in the board’s leadership role and accountability in ESG and the governance structure for ESG matters.

HKEX also introduced new climate change disclosure requirements and incorporated elements of the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) into our Rules. Consultation paper and conclusions on ESG Reporting Guide can be found here.

Disclosure requirements on corporate governance issues are contained in the Corporate Governance Code, Appendix 14 to the Listing Rules (here). With effect on 1 January 2022, the Corporate Governance Code was revised to further enhance corporate governance standards among listed issuers in Hong Kong, specifically in the areas of corporate culture, director independence and diversity. The Corporate Governance Code mandates that IPO applicants must have at least one female director on board and existing listed issuers must appoint at least one female director on their boards by the end of 2024.

Issuers are required to publish ESG reports (covering financial year commencing on or after 1 January 2022) at the same time as publication of annual reports. Consultation paper and conclusions on the amendments can be found here.

Written guidance on ESG Report includes:

• ESG Reporting Guide and FAQs
• Publications and Training under the HKEX ESG Academy
• ESG in Practice the HKEX ESG Academy

In December 2020, the Exchange published the Practitioners Insights which presents a collection of experiences shared by market practitioners, with an aim to help directors of listing applicants and newly listed companies think holistically about building and integrating corporate governance and ESG considerations into their business strategy to achieve long-term value for their organisations.

In March 2020, the Exchange (i) updated the its “How to prepare an ESG report” to reflect the new ESG requirements (including adding a new appendix with specific guidance on the calculation of key performance indicators under the “Social” Subject Area of the ESG Reporting Guide); and (ii) published a new guide tailored for board and directors titled “Leadership role and accountability in ESG” to help directors in understand and carry out their leadership role in ESG.

In November 2021, the Exchange published a new guide “Guidance on Climate Disclosure” to help companies to assess their response to risks arising from climate change and to provide practical tips and step-by-step guidance to assist issuers in preparing TCFD-aligned climate change reporting.

All resources can be found on the HKEX ESG Academy, a centralised ESG educational platform launched in November 2021 to guide issuers and the broader business community in their sustainability journeys. The ESG Academy comprises several sections which houses all training and guidance materials published by the Exchange. In April 2022, the Exchange launched a new page headed “ESG in Practice” under the ESG Academy. The new section highlights the Exchange’s latest ESG regulatory developments, and provides examples of exemplary ESG practices amongst its issuers. 

The Exchange launched e-training courses, for directors to help them develop and refresh their knowledge and skills so as to ensure that their contribution to the board remains informed and relevant. In May 2021, the ESG Academy Webinar Series was launched to deepen ESG understanding and knowledge among listed issuers and the wider business community, and facilitate the integration of ESG considerations into their decision making processes. In November 2021, a webinar titled “Path to Decarbonisation with Climate Transparency” was held, where experts shared insights on leveraging enhanced disclosures and business strategies to achieve a company’s low-carbon goals.

In March 2020, an e-training course titled “Exchange’s New ESG Requirements” was launched to discuss the Exchange’s new ESG reporting requirements.

In May 2019, an e-training course titled “ESG Governance and Reporting” was launched to explain the board’s leadership role in ESG matters.

HKEX representatives also gave presentations at events organised by various non-governmental organisations and professional organisations to identify the latest trends and share practical advice in relation to ESG reporting.

The Director Training Programme 2017/2018 also covers the topic of ESG reporting.

In 2022, HKEX provided training on Climate-related Financial Disclosures (TCFD recommendations) in collaboration with the SSE, CDP and IFC. (source)

• Hang Seng Corporate Sustainability Index
• Hang Seng ESG Index

At the heart of STAGE is an online product repository, which provides access and transparency on sustainable finance products, including sustainability, green, and transition instruments from issuers across a variety of sectors. STAGE is also an online source of sustainable and green finance educational resources, promoting knowledge sharing and stakeholder engagement.

• GEM, since 1999

Source: HKEX Listing Rules

HKEX has been rated highly and awarded by both local and overseas rating agencies or professional institutions, in recognition of its achievement in corporate governance and CSR. More details are available on the HKEX Group website.

As part of the Exchange’s ongoing initiative to raise the overall standard of ESG performance and disclosures among issuers, the Exchange has conducted market consultations on proposed changes to the ESG reporting requirements under the Listing Rules.

In addition, the Exchange conducts periodic review of issuers’ ESG disclosures and publishes its findings both on the ESG Academy and the HKEX Market website.

• Listed company for profit; demutualized in 2000.

HKEX is a recognised exchange controller under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The Exchange is responsible under statute for ensuring, so far as reasonably practicable, that the Hong Kong markets are fair, orderly and informed (the Exchange’s statutory duty). The Securities and Futures Commission performs a lead role in market regulation and certain areas of listing regulation and a complementary role through the exercise of its statutory powers by providing investigation and enforcement in cases involving corporate misconduct. Details of the regulatory framework of Hong Kong’s securities market are available on the HKEX Market website.

Location: Hong Kong

Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code:388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metals Exchange.

As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.

HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.

More information about HKEX and its subsidiaries is available on the HKEX Group website.