As revisions to the Environmental, Social and Governance (ESG) Reporting Guide issued by The Stock Exchange of Hong Kong (SEHK) became effective for financial years commencing on or after 1st July 2020, Hong Kong listed companies started disclosing more non-financial information to their stakeholders.
The Rising of ESG Investing
Over recent years, a growing number of investors have been looking for and incorporating data related to climate change in their decision-making process, a trend that in Hong Kong has been spreading from institutional investors to family offices. Funds with an ESG-themed mandate that adopt an ESG equities index as benchmark of a passive portfolio are rising in the investment market.
According to Investopedia, ESG criteria are a set of standards applicable to a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how the same company manages relationships with employees, suppliers, customers, and the communities where it operates. Lastly, governance refers to the company’s leadership, corporate values, internal controls, and shareholders’ rights. Investors are increasingly considering these non-financial factors as part of their analysis to identify material risks and growth opportunities, and evaluate companies in which they might want to invest.
To support the goals of the Paris climate agreement, the Financial Stability Board (FSB), an international body that monitors and makes recommendations about the global financial system, created the Task Force on Climate-related Financial Disclosure (TCFD) in 2015. This voluntary disclosure platform was designed to “provide a framework for companies and other organizations to develop more effective climate-related financial disclosures through their existing reporting processes” and support “more informed investment, credit or lending, and insurance underwriting decisions”.
Initiatives of the Fujifilm Group
Based on the TCFD’s recommendations, the Fujifilm Group published climate-related disclosures about governance, strategy, risk management, index and targets in its FUJIFILM Holdings Corporation Sustainability Report 2020. The Group has also been promoting its CSR plan, “Sustainable Value Plan 2030” (SVP2030), since it was released in 2017, and continuously strives, through its innovative technologies, products and services, to emerge as a leading force in the transition to a better society. For instance, in 2020 the Group raised its product lifecycle carbon emissions reduction target from 30% to 45% of the FY2013 level, as it had already surpassed its original target.
Amid tightened compliance requirements now in place, we have upgraded our locally-developed ESG data management tool, iESG, accordingly, to fully comply with the latest ESG disclosure rules applicable to listed companies. To facilitate the provision of climate change disclosures (Aspect A4 of the revised SEHK ESG Reporting Guide), we have added a brand-new survey module inside iESG. By completing the climate risk assessment survey and reviewing the system-generated report, users can better understand and gain insights into their company’s climate-related risks and opportunities based on the TCFD framework.
As your business innovation partner, FUJIFILM Business Innovation Hong Kong is committed to helping you manage ESG risks, as well as offering remote business-related solutions for maintaining operations during challenging times while providing a safe working environment for employees. As a local sustainability pioneer, we will continue to leverage innovation to achieve sustainable development goals across our operations and support our community in the development of a sustainable society in the “new normal”.
Katherine has more than 15 years' experience in the quality and sustainability field. Overseeing operations and risk management, she deploys Total Quality Management through the Japan Quality Award framework, and Sustainability through the realisation of the Fujifilm Group's Sustainable Value Plan 2030 (SVP 2030).
Katherine holds a Master’s Degree in Quality Management and is an advanced IEMA approved Environmental Management System auditor. She is a member of the Sustainability Committee of the Hong Kong Management Association. Katherine was also a member of the advisory group for ESG, Waste Management and Energy of Business Environmental Council during 2013-2015.