Hong Kong accounting body calls for more expertise in sustainability practices
Some 21 per cent of Hang Seng Index members obtained a ‘reasonable’ score while 53 per cent received a ‘limited’ rating, council report shows
More than half of Hang Seng Index’s constituent firms have voluntarily published their reports on sustainability performance last year, according to Hong Kong’s accounting regulatory body, which called on companies to hone their expertise in the field.
Some 21 per cent of them obtained a “reasonable” grade from sustainability assurance auditors, while 53 per cent received a “limited” rating, the Accounting and Financial Reporting Council said in a report on Monday. The rest of them scored “mixed or other” rating, it added.
Reasonable assurance requires auditors to obtain sufficient evidence to reduce the risk of misstatement to an acceptably low level. In comparison, limited assurance suggests auditors find no clear evidence against the claims by the reporting entity.
The study on market readiness for sustainability reporting and assurance was conducted from May 6 to 23 last year, when the Hang Seng Index had 82 members. The council also separately surveyed listed firms and auditors on their practices and plans.