Report: More than half of the companies have not yet disclosed scope three emissions data.

DBS Hong Kong and KPMG jointly released a research report, indicating that there are three major gaps in data, knowledge, and funding in terms of climate disclosure and readiness for transformation of Hong Kong consumer goods listed companies compared to the recent climate disclosure requirements of the Hong Kong Exchanges and Clearing Limited (00388). The report pointed out that more than half of the companies have not disclosed scope three emissions data, and 60% of the interviewed companies have not started reporting their scope three emissions data due to difficulties in obtaining high-quality data, even though the majority of the emissions of about 70% of these companies fall within scope three. The report reveals that most companies lack scientifically-based carbon reduction targets, as 85% of the interviewed companies have committed to disclose carbon emissions in their ESG reports, but 57% have not set targets based on science or followed international disclosure standards. Companies need to develop comprehensive low-carbon transformation plans - according to the 3A principle proposed by the Transformation Taskforce, which includes goals, actions, and accountability, only 10% of the interviewed companies have higher completeness in their transformation plans. The published research report "Leading Change: Climate Disclosure and Outlook of Key Industries of Hong Kong Listed Companies" selected the climate-related disclosure status of Hong Kong listed companies, pointing out that three key elements are necessary for effective carbon reduction: accurate data, comprehensive knowledge, and sufficient financial support. The survey in the report shows that there are gaps in these three key elements among the interviewed companies, including lack of data related to scope three emissions, lack of knowledge required to set effective goals and transformation plans, and lack of funds to execute such plans. DBS Hong Kong Managing Director and Head of Corporate and Institutional Banking, Bernard Chung, stated that the joint report points out that limited budget allocation poses a barrier to sustainable development, as only 17% of the interviewed companies know how to use financial tools to assist in achieving sustainable development goals. Wu Guoqiang, KPMG China's Hong Kong Market Managing Partner, pointed out that the industry has realized the importance of sustainable development, but there is a clear lack of resources and expertise in effectively managing emission data and developing practical targets and transformation plans.