Comply or Explain ESG Reporting for Hong Kong Listed Companies for Financial Years Starting from 1 January 2016
Introduction
The Stock Exchange of Hong Kong Limited (the Exchange) has strengthened listed companies’ environmental, social and governance reporting obligations under amendments to the Environmental, Social and Governance Reporting Guide (ESG Guide) and related Listing Rules (Rules) as proposed in its July 2015 consultation paper.
ESG reporting in accordance with the ESG Guide was previously a recommended practice only. The key change is to upgrade a number of the recommended disclosures under the ESG Guide to “comply or explain” (comply or explain). This requires listed companies to report on whether they have complied with the comply or explain provisions of the ESG Guide, and if they have not, they must give considered reasons for their non-compliance. Read more