BDO ESG Awards heightens the role of business in driving net zero

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The recent COP26 climate summit has heralded progress in the fight to tackle global warming, calling for more action from the private sector, and firm, proactive corporate leadership to achieve net zero emissions by 2050.  

As Environmental, Social, and Governance (ESG) initiatives have become the new gold standard for corporate leadership, ESG reporting is more than just a vehicle for corporate image building; it is also a significant investment opportunity and a core part of financial metrics, especially for listed companies. 

In Hong Kong, ESG reporting is mandatory, with a new reporting apparatus in effect since July 1 last year. Leading global accountancy network BDO says the HKEx ESG Reporting Guide launched last year has put the issue centre stage.  

“With the revised guide launched last year, we expect more listed companies to wake up to the importance of ESG reporting in meeting not only stakeholders’ expectations but also those of investors and the public in the area of ESG performance,” says Ricky Cheng, director and head of risk advisory, BDO in Hong Kong. 

“Users of ESG reports are focusing on relevant and material ESG issues affecting the business operations of an organisation. These include the board’s involvement in driving its ESG strategy and in ensuring the integration of ESG issues into the enterprise risk management framework, as well as the functions across an organisation.” 

He adds that riding on this trend, ESG engagement will further strengthen the leading position of Hong Kong as an international financial centre. 

New award for carbon neutrality

The annual BDO ESG Awards is a powerful platform for Hong Kong companies to convey their sustainability credentials to their key stakeholders and learn from their peers. Now in its fourth edition, the awards honour and recognise Hong Kong-listed companies with outstanding sustainability initiatives. They are supported by the South China Morning Post and Hong Kong Economic Times.

Recognition by these high-level awards is not about naming and shaming. Instead, it represents a badge of honour for Hong Kong-listed companies to recognise ESG factors in ensuring a company’s long-term success. In this way they can exceed stakeholders’ expectations in prioritising social value over financial return, promote transparent ESG disclosure and encourage collaborative efforts in tackling global ESG issues. 

The awards have three main categories: Best in ESG, Best in Reporting and ESG Report of the Year, recognising listed companies that have performed with excellence in various areas of ESG practice. 

There is also a Theme Award, which this year focuses on Carbon Neutrality and looks for companies with the determination to achieve net-zero carbon emissions. The winners will be selected by a panel of industry experts, who will judge companies according to their reduction in carbon emissions, carbon reduction initiatives, long-term vision and action plans implemented.

“All key climate indicators and associated impact information have proven the pace of global warming has been accelerated in an unprecedented way,” says Cheng. “It is time for companies to adopt carbon reduction solutions, reduce greenhouse gas emissions and incorporate long-term ‘net-zero’ carbon emissions into their business model. This year’s Theme Award will put a spotlight on the industry best practice.”

Within each of these categories are awards for companies in the large-, middle- and small-market capitalisation segments of the Main Board, as well as companies listed on the GEM.

Nomination opens 

The official entry procedure for BDO ESG Awards is now open, welcoming nominations from third parties as well as self-nominations. Nominees will be evaluated by a panel of reputable and professional judges, based on rigid reporting standards that include compliance with environmental and social criteria. 

Since 2018, BDO ESG Awards has been a key driver for advocating greater social responsibility and sustainability efforts in the private sector. Participation has greatly increased during the lifetime of the programme.

BDO in Hong Kong’s thought leadership in ESG reporting, exemplified by The ESG Reporting Performance of Hong Kong Listed Companies Survey, helps deliver insights into what supports long-term success in business. Additional information on the role of BDO in Hong Kong’s ESG practice, the BDO ESG Awards and entry details for the awards can be found online here.