Letters | As global warming threatens lives, how the Hong Kong stock exchange can lead the climate battle
- The HKEx’s latest review of reporting standards did not follow international benchmarks in requiring more detailed disclosure of greenhouse gas emissions – a pity for a global financial centre like Hong Kong. Full disclosure must be required of listed companies
Though Hong Kong seems to be far away from this disaster, the cumulative effect may be closer than we imagine. We should do our bit for the world and its environment, by requiring listed companies to go green.
Listed companies in Hong Kong are required to produce annual environmental, social and governance (ESG) reports disclosing their performance in this regard, a key aspect of which is disclosure on their effort to reduce greenhouse gas emissions to address climate change.
With regard to the reporting on greenhouse gas emissions, 12 out of the 17 investment managers surveyed asked for more detailed disclosure. Yet, in its final recommendations, the HKEX stopped short of bringing the guideline up to international standards.
It is common to measure a company’s greenhouse gas emissions in three ways: Scope 1 emissions come from direct fuel burning; Scope 2 emissions relate to energy purchases (indirect); and Scope 3 covers all activities not listed in Scope 1 and 2.