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Hong Kong investors value firms with better sustainability disclosures: ASIFMA
- Adoption of sustainability-related financial information disclosures should be prioritised if Hong Kong is to maintain its market attractiveness: lobby group official
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Hong Kong-listed companies that disclose sustainability-related financial information that form part of global baseline reporting standards, are likely to get better valuations in a market that is increasingly integrating sustainability risks into its investment decision-making, according to industry lobby group Asia Securities Industry & Financial Markets Association (ASIFMA).
The sustainability and climate standards released last June 2023 by the International Sustainability Standards Board (ISSB), a body set up during the COP26 global climate summit in 2021 to consolidate various reporting standards, form part of a globally recognised baseline that jurisdictions around the world use to improve the consistency, comparability and usefulness of sustainability disclosures.
Sustainability-driven funds may bypass the city if companies fail to adopt the general requirements for sustainability-related financial information disclosures, known as S1, in Hong Kong as soon as possible, Yvette Kwan, executive adviser to ASIFMA Asset Management Group said in an interview, reiterating a view reflected in the lobby group’s “Adoption of the ISSB Standards in Asia” paper released on Thursday.
“As Hong Kong looks to maintain its market attractiveness and role as a leading sustainable finance hub for the region, adoption of sustainability-related financial information disclosures should be prioritised,” she said.
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