The company can present the opinions through stakeholder engagement and materiality assessment sections in the ESG report to further understand the scope of stakeholders' concerns, and identify, develop, and achieve accountable and strategic responses to ESG issues.

The first step towards ESG reporting is understanding the relevant regulations and standards in your industry. This is followed by conducting a materiality assessment to identify the ESG factors most relevant to your business. Once these factors have been identified, you should collect data, set benchmarks, and define goals related to these ESG factors. It's advisable to involve all relevant departments in this process to ensure comprehensive reporting. A professional ESG consultancy can guide you through each step, ensuring a robust and compliant ESG report.

A well-crafted ESG report serves as a powerful tool for demonstrating a company's commitment to sustainable practices and social responsibility. By showcasing initiatives and progress in areas such as environmental conservation, social impact, and corporate governance, companies can strengthen trust and build stronger relationships with stakeholders. Additionally, transparent and consistent ESG reporting can enhance a company's reputation by demonstrating its commitment to accountability and long-term value creation.

Our consulting team is formed by experienced ESG professionals. We are certified by the GRI, including but not limited to the sustainability reporting process, GRI standards certification training, and GRI certified sustainability professional. We are also a licensed assurance service provider of AccountAbility AA1000 CIC, and our managing director is the judge of the Best Corporate Governance and ESG Awards organized by HKICPA. With our expertise and experience, we assist our clients in complying with ESG requirements set out by HKEX and act as a partner in devising sustainability strategies by providing value-added services.

We keep ourselves continually updated with the latest international standards and best practices in ESG reporting, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD). Our comprehensive ESG report-writing process involves diligent benchmarking against these standards, ensuring each report we craft is both compliant and reflective of global best practices.

We stay ahead of the curve by actively monitoring changes in ESG trends, guidelines, and regulations around the globe. Through regular updates and consultations, we ensure our clients are well informed and prepared to adapt their ESG strategies accordingly. Additionally, our team assists in implementing necessary changes to ESG reporting protocols, ensuring our clients' reports remain relevant and compliant amidst this rapidly evolving landscape.

In this situation, the ESG report of a company should focus on the social part rather than the environmental and pollution parts. In addition, if the company does not have relevant data or information to disclose, it can provide a reasonable explanation for non-disclosure of the required information following the "comply or explain" provision, which the HKEX will accept.

An ESG report illustrates the sustainability performance of the company to its stakeholders. It generally covers two subject areas, i.e., Subject Area A 'Environmental' and Subject Area B 'Social', according to the ESG Reporting Guide by HKEX. The former requires corporates to report companies’ emissions, use of resources, their impact on natural resources and the environment, etc; while the latter requires corporates to report on their employment, labour and operating practices, community investment, etc.

Carbon pricing curbs greenhouse gas emissions by placing a fee on emitting and/or offering an incentive for emitting less. The price signal created shifts in consumption and investment patterns, making economic development compatible with climate protection.

Carbon pricing works by capturing the external costs of emitting carbon – i.e., the costs that the public pays, such as loss of property due to rising sea levels, the damage to crops caused by changing rainfall patterns, or the health care costs associated with heat waves and droughts – and placing that cost back at its source.

Carbon pricing effectively shifts the responsibility of paying for the damages of climate change from the public to the GHG emissions producers. This gives producers the option of either reducing their emissions to avoid paying a high price or continuing emitting but having to pay for their emissions.