Opinion

Hong Kong needs ESG talent, but what makes someone qualified?

Companies in Hong Kong are urgently seeking employees who can help them meet their sustainability goals, but finding the right skill set is a challenge

This talent gap is driving the development of new courses and qualifications that encompass training in both business and the environment

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The campus of the Hong Kong University of Science and Technology (HKUST), the first university in the city to offer an undergraduate degree in green finance. Photo: HKUST

Christine Loh is chief development strategist at the Institute for the Environment, Hong Kong University of Science and Technology.

Published: 8:15am, 1 Feb 2023

Who qualifies as a sustainability professional? This is a matter that has yet to be settled. Employers in Hong Kong are seeking to hire people with experience in measuring the sustainability of a company or investment from the perspective of its environmental, social and governance (ESG) performance.

Such experience is increasingly sought after owing to the pressure on companies to disclose their ESG performance, amid a global and local push for them to reduce their carbon and other emissions, as well as improve their social impact. Companies are collecting data on their environmental and social performances because regulators, bankers, insurers and investors are demanding to see it – especially with respect to climate risks, since mitigating climate change is now a major endeavour across economies.

For example, the Hong Kong Monetary Authority, which regulates banks, is requiring lenders to report their climate risks. The banks, in turn, are asking their corporate clients to disclose their climate risks, because these are part of the bank’s risks.

The Securities and Futures Commission, which regulates the securities market, including the stock exchange, is also requiring similar disclosures of listed companies. The stock exchange has also been strengthening its ESG disclosure requirements.