Environmental, Social and Governance (ESG) Newsletter - Q3 2024 

Are you prepared for the new ESG Code? Starting 1 January 2025, significant changes will impact how companies report their ESG activities.

This newsletter will guide you through the essential updates and help you stay ahead of the curve.

For December year end clients, your company's ESG report for FY2025, to be published in April 2026, must comply with the new ESG Code.

For March year end clients, your company's ESG report for FY2025/26, to be published in July 2026, must comply with the new ESG Code.

HKEX has introduced new requirements for climate-related disclosures across four core pillars: Governance, Strategy, Risk Management and Metrics & Targets. 

We are dedicated to ensuring your seamless transition to the new ESG Code with the following comprehensive services. 

(i) Governance

What are the major updates on New ESG Code?

Disclosure on the Company’s skills and competencies in overseeing climate-related risks and opportunities.

What will our firm do for your Company?

We will offer in-depth training sessions for your Board of Directors and Management on the new ESG Code and climate-related risks and opportunities. This will equip your leadership with the necessary skills to oversee and manage these changes effectively.

What are the major updates on New ESG Code?

Disclosure on Management's role in using control and procedures to support oversight of climate-related risks and opportunities. This also involves explaining how these controls and procedures are integrated with other internal functions.

What will our firm do for your Company?

During our internal control review, we will place emphasis on climate-related risks and opportunities. We will advise on how to set up controls and procedures to support the oversight of these climate-related risks and opportunities. 

(ii) Strategy

What are the major updates on New ESG Code?

Analyze climate-related risks and opportunities over the short, medium and long term, and disclose the following:

-  effect on the Group's business model and value chain;

-  effect on the Group's strategy and decision-making;

-  effect on financial position, financial performance and cash flows;

-  climate resilience scenario analysis

What will our firm do for your Company?

Our team will perform a preliminary quantitative and qualitative analysis of your Company’s climate-related risks and opportunities. 

(iii) Risk Management

What are the major updates on New ESG Code?

Disclose how the Company identifies, assesses, prioritizes, and monitors climate- related risks and opportunities.

What will our firm do for your Company?

We will help identify, assess, prioritize, and monitor climate-related risks and opportunities. Our experts will guide your Company through the process, integrating these considerations into your Company's risk management framework.

(iv) Metrics and Targets

What are the major updates on New ESG Code?

Disclose Scope 3 Greenhouse Gas Emissions (i.e., indirect emissions that occur outside the company, including both upstream and downstream emissions).

What will our firm do for your Company?

We will provide tools and templates for collecting ESG data, including Scope 3 Greenhouse Gas Emissions. Our team will support your Company in gathering and reporting this data accurately, treating initial efforts as part of a training process.

What are the major updates on New ESG Code?

Set targets on environmental KPIs and monitor the performance against targets

What will our firm do for your Company?

We will assist you in setting realistic and achievable environmental KPIs and monitoring your performance against these targets. This will ensure continuous improvement and compliance with the new ESG Code.