Environmental, Social And Governance (ESG) Reporting

And Consultancy
Environmental, Social and Governance (“ESG”) is no longer merely a corporate
social responsibility or a reputational issue. It affects businesses, and failure to
manage these risks carefully may bring about real financial impacts on the
company. According to the Main Board Listing Rules and the GEM Listing Rules of
the Stock Exchange of Hong Kong Limited (“HKEX”), listed companies are required
to publicly disclose an ESG report on an annual basis, regarding the same period
covered in their annual report. The report has to meet the requirements of the
Environmental, Social and Governance Reporting Guide (the “Guide”),and publish
in the listed companies’ annual report or in a separate report.The Guide contains 11
Aspects under two Subject Areas: Environmental (three Aspects) and Social (eight
Aspects).

Environmental
How does your company conserve the  Emissions
environment?
 Use of Resource
 The Environment and Natural
Resources
Social
How does your company treat  Employment
employees?
 Health and Safety
 Development and Training
 Labour Standards

What measures have your company  Supply Chain Management

taken to ensure that the company
operates in a moral and responsible  Product Responsibility
manner?  Anti-corruption

What efforts did your company make  Community Investment

in the past year to expand community
involvement?

In 2018, HKEX completed an ESG review of the listed companies’ compliance

with the ESG Guide. It reflected that 62% of the sample listed companies did
not report on the “Comply or Explain” provisions under the Aspects and
non-compliance without giving considered reasons amounts to a breach of
the Listing Rules.
 
In May 2019, HKEX published a consultation paper on Review of the ESG
Reporting Guide. One of the key focus of the latest ESG Consultation is to
support and improve listed companies’ governance and disclosure of ESG
activities and metrics. To emphasize the importance of the governance
structure of ESG, the board’s leadership role and to promote accountability
of the board in this area, HKEX proposed to introduce mandatory disclosure
requirements to improve listed companies’ ESG performance and reporting.

Our Services
SWCS has established a professional ESG team who was equipped with
extensive experiences in preparing the ESG reports for various industries, and
technical expertise in the listing rules, laws and regulations from various
regulatory organizations. Our team is dedicated to collaborating with you to
provide the ESG Reporting and Consultancy Services.
 
Our ESG Reporting and Consultancy Services include:

ESG Reporting
Our Basic Reporting, Advance Reporting and Full Reporting Services allow you
comply with the latest ESG guide published by HKEX through providing
customized data collection templates, training for senior management and
staff as well as drafting a quantitative and qualitative ESG report.
 
Advisory Services
We offer comprehensive advisory service and guidance on establishing
sustainability strategies which can assist clients in reducing operational cost
and maximizing competitive advantages. For example, we provide mitigation
measures on addressing environmental and social impacts by establishing the
ESG data inventory, setting reduction targets, offering training to
management and employees to enhance internal awareness and transparency.
 
Carbon Auditing
Our professional team conducts carbon audits and helps clients establish a
Greenhouse Gas (GHG) inventory which allows them to understand their
carbon performance. With the measurement and the analysis of carbon
emissions, we advise our clients on strategies on enhancing energy efficiency
and reducing carbon emissions. It enables clients to comply with the
disclosure requirements of A1.1 (types of emissions), A1.2 (GHG emissions in
total and GHG intensity) and A1.5 (measures to mitigate emissions and results
achieved) of the ESG Reporting Guide of the HKEX.
 
Stakeholder Engagement
We assist our clients in engaging their internal (e.g. employees) and external
stakeholders (e.g. listed issuers, shareholders, investors) in decisions-making
processes through meetings, questionnaires and workshops so as to align the
business practices and ESG reporting with public needs and expectations.
 
Data Collection for Key Performance Indicators (KPIs)
Apart from ESG reporting, we assist our clients in measuring and calculating
environmental and social KPIs with reference to the ESG guide, including the
information of Greenhouse gas (GHG) emissions in total, GHG intensity and
the amount of hazardous and non-hazardous wastes.
 
Translation, Design and Typesetting
We offer one-stop services from translating, typesetting, report design to
printing in order to make sure that the report reflects the ESG information to
your stakeholders effectively.