WHAT ARE THE BENEFITS OF ESG REPORTING TO COMPANIES?

 

Improve reputation and trust

An ESG report will help external stakeholders understand the company and its approach to ESG issues. Greater transparency may also increase a company’s credibility, improve its image and reputation in the long-run.

 

Attract investors

A good ESG report can display to investors how the reporting company manages its environmental and social challenges and risks. A good ESG report also indicates the companies’ effort in improving corporate governance, increasing transparency, and thereby reducing financial risks.

 

Enhance management efficiency and employee relations

The reporting process helps a company assess its ESG performance and identifies gaps for improvement.

 

Develop competitive advantage and increase visibility

A company that outperforms others in ESG matters sets itself apart from peers. Communicating periodically what the company is doing for the environment and society helps raise its business profile. Also, Hang Seng Corporate Sustainability Index & Hang Seng Corporate Sustainability Benchmark Index include Hong Kong-listed companies that perform well with respect to corporate sustainability and increase visibility.

 

Enhance risk management ability

The preparation of an ESG report can sharpen a company’s ability to analyze, prepare for and manage potential risks.