HKEX: Net Zero & ESG Guide

The Hong Kong Exchanges and Clearing (HKEX) has announced two new initiatives to support businesses and investors in their sustainability journey, seeking to help facilitate the net-zero transition across the region:

The Practical Net-Zero Guide for Business (Net-Zero Guide) was published to help guide companies in developing a pathway to net-zero
A partnership with leading ESG data providers to display HKEX-listed companies ESG metrics

Practical Net-Zero Guide for Business

HKEX’s Net-Zero Guide introduces the essential steps for businesses to develop a pathway to net-zero, aiming to help companies to understand their greenhouse gas emissions in terms of where they are now; where they want to get to; and how they can get there.

The Net-Zero Guide takes companies through the processes to develop an appropriate net-zero pathway by:

identifying resources required to calculate and establish a carbon emission baseline;
setting near-and long-term carbon emission reduction targets;
identifying emission reduction potential;
understanding different mitigation strategies to reduce emissions outside of the value chain; and
understanding different net-zero strategies implemented by various industry leaders.

Displaying ESG metrics of Hong Kong-listed companies through STAGE Product Repository

HKEX has also decided to partner with leading ESG data providers to display HKEX-listed companies’ ESG metrics on the Sustainable & Green Platform (STAGE).

The aim of this initiative is to provide a consolidated view of ESG ratings from different providers, generating greater levels of awareness and enabling investors to compare companies across sectors and sources when making their investment decisions.

The section will initially cover over 600 companies listed on HKEX that have received ESG ratings from at least one leading provider, namely Hang Seng Indexes, MSCI, and S&P Global.