(HONG KONG, 29 November 2023) The Hong Kong Institute of Certified Public Accountants (HKICPA) today announced the winners of the 24^th Best Corporate Governance and ESG Awards (“Awards”).

 

This year, the Most Sustainable Companies/Organizations (MSCO) Awards remained the top accolades in the competition, recognizing listed companies and public sector organizations (“PSOs”) that demonstrated excellence in both corporate governance (“CG”) and environmental, social and governance (“ESG”) practices and reporting, while integrating these two elements into their values, strategies and operations. Separate CG and ESG Awards were also available for companies and PSOs that achieved a high standard of performance in either CG or ESG.

 

The record number of 34 awardees this year (see the Appendix below) includes 12 MSCO Awards’ winners. HKICPA congratulates CLP Holdings Limited, a platinum award winner in the Hang Seng Index category, which continued to set the benchmark for CG and ESG performance among listed companies in Hong Kong. Other platinum-award-winning listed companies were Prudential plc, in the large market capitalization category and The Hongkong and Shanghai Hotels, in the medium market capitalization category. In the public sector category, only the Airport Authority Hong Kong won an MSCO Award.

 

In the dedicated ESG Awards section, five Mainland companies were among the winners, including three first-time awardees – Alibaba Group Holding Limited, Geely Automobile Holdings Limited and JD Logistics, Inc. Other new ESG listed company awardees were Sands China Limited and Cathay Pacific Airways Limited. The Hong Kong Monetary Authority was also a new winner for its ESG in the public sector category.   

 

In the separate CG Awards section of the competition there were seven awardees, all previous winners.

 

The Awards Presentation Ceremony was held in JW Marriott Hotel Hong Kong today. The Institute was pleased to welcome Ms. Salina Yan, Permanent Secretary for Financial Services and the Treasury (Financial Services) as the Guest of Honour. During her speech at the ceremony, addressing the winners and other guests, she said, “you have demonstrated clearly that doing good to the society and the environment also means doing good to your businesses. From a big picture point of view, concerted efforts by individual organizations to attain a high level of governance …can also help foster the credibility and resilience of our financial markets to weather changes and challenges”. Ms. Yan continued, “Thanks to the hard work of our professionals and professional bodies like the HKICPA, regulators and stakeholders, we are seeing an increasingly robust and vibrant ESG ecosystem in Hong Kong.”

 

Ms. Loretta Fong CPA, HKICPA President and chair of the judging panel of the Awards, said, “We are pleased to see more very strong performances this year, and number of new winners emerging, particularly in the separate ESG section of the Awards. It was good to observe clear improvements in the ESG reporting of Mainland enterprises and more companies are establishing better connections between their ESG vision, strategies, and action plans, which in turn is a demonstration of their commitment to achieving their sustainability goals, such as carbon neutrality, within specific timeframes.  We found that this information was likely to be presented on a clear and eye-catching way through use of tables or diagrams, and it effectively laid the foundation for more detailed discussions in the subsequent sections of the companies’ ESG reports”.

 

The HKICPA notes that an increasing number of companies and PSOs have been enhancing their ESG practices and disclosures, driven by the Hong Kong SAR Government's emphasis on achieving carbon neutrality by 2050, and the Mainland Government’s 2060 target, the accompanying regulatory push for enhanced ESG disclosures, and mounting pressure on institutional investors to prioritize sustainable investments.

 

While ESG practices and reporting are striding ahead, the HKICPA says that Hong Kong’s progress and development in CG is more disappointing. “Standards of CG, overall, appear to have plateaued” say Ms. Fong. “While there are companies and public sector entities that are continuing to raise the standards of their CG, these tend to be familiar faces. While we applaud those companies that are strengthening their focus on addressing some of the key ESG issues facing society, at the same time, they must not lose sight of the need for high-quality CG. Good CG underpins everything that a business does, so it is important to have the right governance structures in place, as well as high standards of ESG, to ensure the long-term sustainability of the business. Good CG and good ESG are two sides of the same coin, which is why we stress them both through the MSCO Awards”, Ms. Fong explains.               

 

Key areas for further Improvement

 

Corporate Governance

 

·       Long-serving INEDs and board diversity

 

It was observed some boards have a significant proportion of long-serving independent directors (“INEDs”) with a higher average age; their terms tend to be renewed, without much explanation being provided in the relevant companies’ annual reports. The companies concerned should justify decisions to reappoint in these circumstances, such as identifying any unique expertise or exposure that a long-serving INED has, which continues to benefit the company. Further, the number of female directors on boards in Hong Kong, overall, is still relatively low and quite static.

 

Mr. Patrick Rozario, Chairman of the Awards Review Panel, said, “We believe that introducing fresh INEDs onto a board, and expanding its diversity, offers opportunities for new perspectives to be considered, which can be a competitive advantage in a dynamic business environment, with markets that continue to develop and evolve often in new and unexpected directions. Also, gender diversity on boards can encourage better leadership, better CG and ultimately increase corporate performance, which benefits companies and their shareholders. With consideration of ESG factors, which may encompass diversity and inclusion, being an important element for many investors nowadays when making investment decisions, we believe that companies will need to give greater attention to diversity, including more balanced gender representation.”

 

·       Over-boarding directors

 

It was also noted that “over-boarding” is quite a common issue, which does not seem to be adequately addressed in companies’ annual reports. Directors sitting on a number of listed company boards as well as boards of larger PSOs, may not be able to devote sufficient time to each and every board, so as contribute to the effective functioning of the boards that they serve. The companies involved need to disclose the reasons for appointing “over-boarding” directors and provide evidence that they will be able to devote sufficient time to the work of the board.

 

ESG

 

·       Providing quantitative targets and statistics

 

The HKICPA noted that a number of targets remained only qualitative, especially regarding the "social" aspects (i.e., the "S" in "ESG"). This makes it challenging for stakeholders to gauge whether companies are making tangible progress in this area. Additionally, although companies provide annual statistics, they often fail to provide explanations for significant changes over the years, leaving stakeholders without a complete understanding of the situation.

 

·       Adopting ESG assurance

 

It was still not common to find assurance of data in sustainability/ ESG reports among the entities shortlisted in the Awards, which is consistent with the findings of our recent study, “ESG Assurance in Hong Kong 2023: An evolving landscape”. The study found a moderate increase in the number listed companies, overall, seeking external assurance of their ESG performance data and information, although there was a more significant increase among large companies. 

 

Ms. Loren Tang, Chairman of the Awards’ Organizing Committee, said, “Engaging an independent expert to perform assurance procedures can significantly enhance the credibility of sustainability reports. While there is a cost to obtaining assurance, and it potentially requires companies to devote more resources to strengthening their systems and internal controls for collecting, analysing and managing data, to ensure its relevance and accuracy, obtaining independent assurance from a reputable service provider certainly enhances stakeholders’ trust and confidence. It can also help to dispel any concerns about possible "greenwashing". Certified Public Accountants (CPAs) are a good choice when engaging ESG assurers, due to their expertise in areas such as financial reporting, auditing, internal control and risk management, their adherence to a body of professional and ethical standards, as well as the rigorous regulatory oversight of their compliance with these standards.”

 

This year, HKICPA again invited a limited amount of financial sponsorship for the Awards, and was very pleased to receive considerable interest from prominent CPA and other professional consultancy firms (see Note 1) to being associated with these prestigious Awards. The Institute would like to express its appreciation for their support and that of the Awards’ media sponsors (see Note 2).

 

Note 1: list of sponsors (in alphabetical order)

1.    Ace Sustainability & Risk Advisors Ltd.

2.    AVISTA Group

3.    BDO

4.    CityLinkers Group

5.    Deloitte Touche Tohmatsu

6.    Ernst & Young

7.    Grant Thornton Hong Kong Ltd.

8.    HLB Hodgson Impey Cheng Ltd.

9.    KPMG

10.  Mazars

11.  Moore CPA Ltd.

12.  PwC

13.  Riskory Consultancy Limited

14.  RSM Hong Kong

 

Note 2: list of media sponsors (in alphabetical order)

1. ET Net

2. Hong Kong Economic Times

3. The Standard

 

^{The Hong Kong Institute of Certified Public Accountants today announced the winners of the 24th Best Corporate Governance and ESG Awards, which aim to encourage companies to focus on high standards of both corporate governance (“CG”) and environmental, social and governance (“ESG”).}

 

^{Ms. Salina YAN, Permanent Secretary for Financial Services and the Treasury (Financial Services) is the Guest of Honours of the Awards Presentation Ceremony while she also delivered a welcoming address.} 

 

^{During her welcoming speech in the Ceremony, Ms. Loretta Fong CPA, HKICPA President and chair of the judging panel of the Awards said it is pleased to see more very strong performances this year, and number of new winners emerging.}

 

 

 

香港會計師公會「最佳企業管治及ESG大獎2023」獲獎機構創歷史新高

內地企業ESG表現進步 董事會多元化及「過度入閣」問題仍待改善

 

（香港，2023年11月29日）香港會計師公會（公會）今日公布第24屆「最佳企業管治及ESG大獎2023」（大獎）得獎名單。

 

今年，大獎繼續設有最高殊榮「最佳可持續發展公司／機構獎」，以嘉許上市公司及公營機構將企業管治和環境、社會及管治（ESG）融入業務價值、發展策略及日常營運，並在實踐和披露方面表現卓越。此外，在企業管治或ESG其中一項表現優秀的企業或公營機構，也可獲頒企業管治獎或ESG獎項。

 

今年獲獎公司／機構數目達34家（見附件），是獎項設立以來的新高，當中12家獲「最佳可持續發展公司／機構獎」。公會恭賀本年度榮獲「最佳可持續發展公司／機構獎」的得獎機構，包括獲「恒生指數成份股組別」白金獎的中電控股有限公司，繼續成為香港上市公司的企業管治和ESG方面的典範。其他獲白金獎的上市公司包括「大市值組別」的保誠有限公司和「中市值組別」的香港上海大酒店有限公司。「公營機構組別」的香港機場管理局是唯一於「最佳可持續發展公司／機構獎」獲獎的組織。

 

至於ESG獎方面，共有五家內地企業獲獎，其中三家首次獲獎，包括阿里巴巴集團控股有限公司、吉利汽車控股有限公司及京東物流股份有限公司。其他首獲ESG獎的上市公司包括金沙中國有限公司和國泰航空有限公司。在「公營機構組別」中，香港金融管理局亦首次獲獎。

 

企業管治獎方面，共有七家得獎機構，都曾在過去大獎中獲獎。

 

大獎頒獎典禮今日於香港JW萬豪酒店舉行，並幸獲財經事務及庫務局常任秘書長（財經事務）甄美薇擔任主禮嘉賓。她向得獎機構及嘉賓致辭時表示：「獲獎機構展示對社會及環境作出貢獻，同時也有利企業發展。此外，從宏觀角度而言，當企業達到良好的治理水平時，也有助於提升金融市場對氣候變化與相關挑戰的公信力和韌性。」她續說：「感謝專業人士及包括香港會計師公會等專業團體、監管機構及持份者，使香港的ESG生態持續蓬勃發展。」

 

香港會計師公會會長兼「最佳企業管治及ESG大獎2023」評審團主席方蘊萱會計師表示：「我們喜見今年企業或機構在企業管治和ESG表現優異，不少新得獎者突圍而出，尤其在ESG獎方面。公會樂見內地企業它們在ESG披露有明顯改善，亦有越來越多企業正深化ESG願景、策略和行動計劃的聯繫，並設立具體時間目標，反映其推動碳中和等可持續目標的決心。我們發現上述相關資訊以清晰、引人注目的表格或圖表方式呈現，有助於企業在ESG報告的後段進行深入討論。」

 

公會指出，隨著港府和內地政府分別訂立2050年與2060 年碳中和目標，以及監管機構持續推動ESG披露，加上機構投資者對可持續投資的重視不斷加大，越來越多公司和公營機構正進一步深化ESG實踐和披露。

 

公會表示，雖然香港上市公司在ESG的實踐和披露有長足發展，但在企業管治方面的進展稍令人失望。方蘊萱女士解釋：「一般而言，公司和機構於企業管治的發展似乎停滯不前。雖然有些公司和機構在提升其管治方面持續努力，但它們都是熟悉的面孔。我們認為致力解決ESG關鍵議題的公司固然值得讚許，但亦不能忽略優質企業管治的重要性。因為良好的管治可以為企業打好根基；擁有完善的治理架構和高水平的ESG實踐是重中之重，能夠確保企業的可持續發展。良好的企業管治和ESG實踐缺一不可，這亦是我們於大獎設立「最佳可持續發展公司／機構獎」所宣揚的概念。」

 

有待進一步改善之範疇

 

企業管治

 

·         長期任職的獨立非執行董事和董事會多元化

 

公會觀察到部分董事會中長期任職的獨立非執行董事所佔比例較高，且平均年齡較高，並多獲續任，惟相關公司年報未有詳盡解釋。公司應說明在類似情況下決定續任董事的合理原因，例如長期任職的獨立非執行董事擁有獨有專業知識或經驗，使公司繼續受益。此外，整體而言，香港董事會中的女性董事人數仍然相對較低，未見太大增長。

 

「最佳企業管治及ESG大獎2023」遴選委員會主席羅柏達先生表示：「我們堅信，在董事會引入新的獨立非執行董事，以及提升董事會的多樣性，可為董事會引入全新觀點。商業環境和市場瞬息萬變，此舉能增加公司的競爭優勢。另外，具性別多元的董事會能夠提升公司領導能力、企業管治以至企業績效，對公司和股東有利。由於多元共融等ESG因素已經成為投資者進行決策時的重要考慮，我們相信公司將需要更重視多樣性，包括性別多元化。」

 

·         「過度入閣」問題

 

公會指出「過度入閣」問題相當普遍，但相關的資訊未必於公司年報中作深入討論。若董事同時兼任多家上市公司和大型公營機構的董事職務，可能無法在各個董事會上投入足夠時間，以充分貢獻其所屬董事局。相關公司需要披露任命「過度入閣」董事的原因，提供證據表明他們將能夠為董事會的工作投入足夠時間。

 

 

ESG

 

·         提供量化目標和統計數據

 

公會指出，許多目標只流於質化，特別是在「社會」範疇方面，讓持份者難以衡量公司的實際進展。 此外，儘管公司提供年度統計數據，但未有就不同時期的重大轉變提供解釋，導致持份者無法完全掌握現況。

 

·         採用 ESG 鑒證

 

在入圍機構中，為可持續發展或ESG報告進行鑒證仍未普及，這與公會《2023香港ESG鑒證最新情況 : 一個不斷演變的領域》研究報告結果一致。研究發現，雖然整體採用ESG資料外部鑒證的上市公司數目有所增加，但只有大型公司的升幅較為明顯。

 

「最佳企業管治及ESG大獎2023」籌委會主席鄧苑儀女士表示：「採用獨立專家進行鑒證可以顯著提高可持續發展報告的信用度。雖然鑒證產生一定成本，並可能需要公司投入更多資源強化收集、分析和管理數據的系統及內部監控，以確保數據的相關性及準確程度，但由信譽良好的機構提供外部鑒證，可增強持份者信心，更可消除『漂綠』的憂慮。會計師屬ESG外部鑒證者的理想選擇，因其在財務匯報／審計、內部監控和風險管理等方面訓練有素及經驗豐富，並熟悉相關準則。再者，他們的工作亦受到專業及道德標準約束及監管。」

 

今年獎項榮獲贊助，香港會計師公會欣喜獲頂尖會計師事務所和其他專業諮詢公司（註一）積極參與，公會亦衷心感謝大獎的傳媒合作夥伴的鼎力支持（註二）。

 

 

註一：贊助名單（按英文字母排列）

1.   傑思可持續發展與風險諮詢有限公司

2.   艾華迪集團

3.   香港立信德豪會計師事務所

4.   連城集團

5.   德勤 · 關黃陳方會計師行

6.   安永會計師事務所

7.   致同（香港）會計師事務所有限公司

8.   HLB國衛會計師事務所有限公司

9.   畢馬威會計師事務所

10. 中審眾環(香港) 會計師事務所有限公司

11.  大華馬施雲會計師事務所有限公司

12.  羅兵咸永道

13.  Riskory Consultancy Limited

14.  羅申美會計師事務所

 

註二：傳媒合作夥伴（按英文字母排列）

1. 經濟通

2. 香港經濟日報
3. 英文虎報

 

^{香港會計師公會今日公布第24屆「最佳企業管治及ESG大獎2023」（大獎）得獎名單，大獎旨在嘉許在企業管治和環境、社會及管治（ESG）表現卓越的企業。}

 

^{大獎頒獎典禮幸獲財經事務及庫務局常任秘書長（財經事務）甄美薇擔任主禮嘉賓並致歡迎辭。}

 

^{香港會計師公會會長兼「最佳企業管治及ESG大獎2023」評審團主席方蘊萱會計師於頒獎典禮上表示，喜見今年企業或機構在企業管治和ESG表現優異，有不少新得獎者突圍而出。}