Climate change is creating global business challenges and putting company profits at risk. It is therefore important for companies to measure and manage their carbon emissions and associated risks and opportunities.
Disclosure and management of company carbon emissions is particularly important to ensuring sustainable growth and attracting long-term investments. This also helps develop sustainable economies where companies' management of their carbon risks exposure and opportunities is directly linked to the climate resilience of the financial markets. Investors, companies, stock exchanges and governments all play important roles in managing climate change challenges and opportunities from financial markets perspectives.
This study, commissioned by the British Consulate-General Hong Kong and conducted by Trucost, reviews how companies listed on the Hong Kong Exchanges and Clearing (HKEx) manage their exposure to climate change risks and opportunities, in light of HKEx's proposal to move the voluntary Environmental, Social and Governance Reporting Guide (ESG Guide) towards a more rigorous 'comply or explain' approach by the end of 2015. It examines both the carbon disclosure level and carbon management performance1 of 100 selected listed companies between 2011 and 2013. The study also makes reference to the experience of other major stock exchanges, reporting companies and investors in other markets. This report concludes with recommendations on how Hong Kong can improve the uptake of carbon disclosure for companies listed on the HKEx.
Read Environmental Finance's summary of this report here.