HKEX Launches Net Zero Guide, ESG Metrics on STAGE

The Net Zero Guide will help companies develop a pathway to net-zero. A new equities section on STAGE will provide a consolidated view of ESG ratings from different providers.

The Hong Kong Exchanges and Clearing (HKEX) has announced two new initiatives to support businesses and investors in their sustainability journey, seeking to help facilitate the net-zero transition across the region.

As part of its commitment to support a thriving sustainable finance ecosystem, HKEX has today published a Net-Zero Guide for Hong Kong listed issuers and other corporations looking for guidance on charting their net zero carbon journey.

The Net-Zero Guide introduces the essential steps for businesses to develop a pathway to net zero, aiming to help companies to understand their GHG emissions in terms of where they are now; where they want to get to; and how they can get there, HKEX says.

The Net-Zero Guide takes companies through the necessary processes to develop an appropriate net-zero pathway. This includes identifying resources required to calculate and establish a carbon emission baseline, setting near-and long-term carbon emission reduction targets, identifying emission reduction potential, understanding different mitigation strategies to reduce emissions outside of the value chain, and understanding different net zero strategies implemented by various industry leaders.

HKEX has also announced the launch of a new service displaying Hong Kong-listed companies ESG metrics via through STAGE, its multi-asset platform launched last December to promote sustainable finance.

Adding to the sections on bonds and ETPs, a new equities section on STAGE will display ESG metrics of Hong Kong-listed companies, published by ESG data providers, which will help increase access and transparency on sustainable financial products for both institutional and retail investors.

The aim is to help provide a consolidated view of ESG ratings from different providers, enabling investors to compare companies across sectors and sources when making their investment decisions, HKEX says, adding that the feature will also support companies on their sustainability journeys and generate greater ESG awareness among retail investors.

The new section will initially cover over 600 companies listed on HKEX that have received ESG ratings from at least one leading provider, namely Hang Seng Indexes, MSCI and S&P Global.

“HKEX’s role in global financial markets, and within our community, is one that comes with great responsibility, and as the world now grapples to meet climate targets, we want to continue to play our role in the greatest challenge of our generation,” said Head of Green and Sustainable Finance, Grace Hui.

“We are staunch advocates of the transition to a low-carbon economy and we encourage all companies and investors to join us in securing a sustainable future for this generation and the next.”

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