Hong Kong listed firms adopting committees for ESG disclosures

Environment, social and governance (ESG) disclosures are becoming increasingly important for companies seeking financing, according to accounting and advisory firm BDO. Independent assurance over ESG disclosures provides multiple benefits to companies, including more favourable interest rates. Ricky Cheng Man-hon, the director and head of risk advisory at BDO Hong Kong, said concerns of companies listed in Hong Kong over ESG have risen, leading to an increase in the number of companies establishing committees related to ESG to monitor their activities related to the environment and society. Cheng said that the committee can facilitate coordination between different departments within the company, gather information on ESG disclosures, and analyse and consolidate the data. Despite the potential increase in costs, the process of establishing ESG-related committees can prove advantageous in attracting investors and improving ESG ratings, especially in the case of green financing.