From GMTEight Finance's "Hong Kong Capital Market ESG White Paper," we can see the new chapter and challenges in ESG for the Hong Kong capital market.

Hop Hing Group Holdings Limited (00298) Hop Hing Group Holdings LimitedESGESG ESGESG ESGESGESGESGExample: HANSOH PHARMA (03692)As a leading innovation-driven pharmaceutical company in China, HANSOH PHARMA focuses on corporate governance, corporate behavior, product quality and safety, universal healthcare, human resource development, environmental protection, and community progress as key areas of attention and as the foundation of ESG management. The company emphasizes internalizing the ESG concept in the hearts of employees through production and operating practices and corporate cultural activities, and externalizing it in the company's actions, forming a distinctive corporate culture for HANSOH. In addition, the company conducts data verification on emissions from all greenhouse gas sources across the group to identify the impact of the company's operations on the environment and improvement directions. It has set targets for reducing greenhouse gas intensity by 2030 and tracks progress towards achieving these targets annually. As a result, HANSOH PHARMAMSCI's ESG rating has been upgraded to AA. Real Estate Case: SHENZHEN INVEST (00604) With property development, property investment, and urban operations services as its core business, SHENZHEN INVEST also ventures into innovative businesses such as high-tech agriculture and high-end manufacturing. Aligning with the strategic goals of the "Fourteenth Five-Year Plan," SHENZHEN INVEST integrates ESG principles into its daily operations, focusing on coordinated development with consumers, the industrial chain, employees, environment, and society. By strengthening ESG awareness, improving ESG management systems, and establishing ESG reporting mechanisms, the company strives to achieve balanced economic, environmental, and social benefits. It aims to reduce carbon emissions, energy use, water resources and waste utilization, and achieve a 15% reduction in unit revenue-based carbon emissions intensity by 2030 compared to 2022. SHENZHEN INVEST has consistently received an "A" rating in the Morgan Stanley MSCI-ESG Index, maintaining a leading position among mainland real estate companies. Utilities Case: CHINA WATER (00855) CHINA WATER is the only listed company in the Hong Kong stock market focused on water supply and pipeline direct drinking water services. Adhering to the core values of "Water-Centric, Benefiting Society," the group has set overall goals of reaching carbon peak before 2030 and achieving net zero emissions before 2050 in the "Carbon Peak and Carbon Neutrality Implementation Plan" announced in 2021, 10 years ahead of government targets. CHINA WATER has established an ESG management system that meets governance requirements, facilitating coordinated development within the company. Moody's has issued a second-party opinion on the sustainable finance framework of CHINA WATER's fully-owned subsidiary, Silver Dragon Water Supply Group, awarding it the highest score of SQS1 (Excellence) for sustainable development quality. Financial Technology Case: BAIRONG-W (06608) BAIRONG Cloud incorporates ESG principles into its strategic goals, organizational structure, and daily operations to support financial digital transformation, employee and community development, compliance, and reducing environmental footprint. It actively contributes to achieving U SDGs and has obtained various environmental certifications and awards, such as ISO 14001 environmental management system certification and five-star green data center certification, as well as multiple ESG awards and certifications domestically and internationally. New Energy Case: ENVISION GREEN (01783) ENVISION GREEN aims to achieve environmental protection, social responsibility, and good governance through five development strategies focusing on high-end talents, smart buildings, green energy, new materials, and corporate culture. By upgrading its business in areas such as smart buildings and green energy, the company has achieved ESG objectives and received awards such as the Best Energy and Resources Company in the ESG field, ESG Excellent Leadership Award, and 2023 ESG Innovation Award. Shaping a Green Capital Market: Trends and Suggestions for Hong Kong's ESG Capital Market Development As the Hong Kong Stock Exchange and the Securities and Futures Commission push for ESG governance and disclosure to align with ISSB guidelines in 2023, focusing on mandatory climate-related disclosures, promoting standardized ESG ratings and data products, listed companies should be aware of the new requirements for ESG disclosure. The White Paper also suggests that Hong Kong-listed companies and those planning to list should prepare and develop transitional plans based on the latest requirements in the Consultation Document for the revision of the Environmental, Social and Governance Reporting Guide and ISSB guidelines. For Hong Kong-listed companies with SOE-controlled listings, particularly those in the financial, technology, and new energy sectors, it is important to pay attention to ESG requirements from various national standards and regulatory policies, including those from the China Securities Regulatory Commission, Ministry of Ecology and Environment, and major exchanges. ESG is not only a moral orientation but also an investment concept rapidly spreading in the capital markets. As companies' carbon footprints, resource efficiency, and environmental sustainability gain investor attention, ESG investing is becoming a global consensus. The application of ESG in the capital markets not only provides new dimensions for company operations but also creates more choices and value for investors. As ESG deepens in the capital markets, the importance of long-term value and risk management, investor trends towards ESG investing, capital flows into ESG projects, transparency of ESG data, shareholder activism, and the promotion of regulations and standards are increasingly being emphasized. Implementing ESG strategies as a means to enhance corporate competitiveness is particularly important in Hong Kong's capital markets. As an international financial center with a unique geographic location and a favorable market environment, Hong Kong attracts the attention of many international investors. In this context, Hong Kong-listed companies need to address new requirements for ESG disclosure, incorporating the latest ISSB guidelines, in order to adjust and plan ahead. By comparing company ESG management and disclosure practices with the guidelines, monitoring climate-related disclosure requirements, and considering the introduction of third-party assessments and digital tools, companies can adapt to the evolving ESG landscape in Hong Kong's capital market.In order to meet the demands of local investors and also satisfy the expectations of international capital, Hong Kong listed companies must perform well in terms of ESG (Environmental, Social, and Governance) to maintain their market position.Currently, HKEX's requirements for ESG disclosure are becoming increasingly strict, actively promoting listed companies to improve their ESG information disclosure and enhance their environmental and social performance. This will help enhance their overall competitiveness and stand out among many listed companies. For the full report, please click on the link to read and download: https://img.zhitongcaijing.com/pdf/ESG20240513.pdf