The latest report from the Hong Kong Institute of Chartered Secretaries shows that only 33.3% of respondents are engaged in Environmental Reporting.
"The Report shows that Environmental Reporting is not common in Hong Kong. Companies seem reluctant to undertake ER without a compelling reason to do so. By this most mean a statutory requirement," said Richard Leung, the President of HKICS.
The HKICS ER research project studied the benefits of ER for companies from a number of perspectives including that of the public, investors, other stakeholders as well as the reporting company. It also examined how ER can be best implemented in Hong Kong especially for the Main Board listed companies.
"The business community knows very little about ER, its benefits and functions," said Leung. "The Institute suggests that regulators give more incentives to the listed companies with regards to ER such as introducing ER as a Recommended Best Practice under the Listing Rules and perhaps compile guidelines for listed companies on ER. Hong Kong should also consider establishing a Hang Seng Environment Index in the near future and a CSR/Sustainability Index as a long term goal."
According to the report, 87.5% of those not engaged in ER have no plan to do so in the coming three years. About 68% of respondents agree that there are not enough regulatory incentives for listed companies to perform ER. 65.6% of those not engaged in ER cited "regulatory incentive" as the primary driver which would influence their future adoption of ER.
