(HONG KONG, 15 July 2022) The integration of corporate governance (CG) and ESG (environmental, social and governance) is one of the critical factors for listed companies and public sector organizations to attain resilience and long-term sustainable development. The prioritization of long-term success and ongoing stakeholder engagement over the pursuit of short-term gains by major companies and organizations also contributes to achieving a sustainable future for society. Against this backdrop, the Hong Kong Institute of Certified Public Accountants (HKICPA) is pleased to announce the launch of its flagship awards programme, the Best Corporate Governance and ESG Awards 2022 (Awards).        

The Awards are now open for applications from listed companies and public sector/ not-for-profit organizations until 10 August 2022.

“The elements of CG and E, S and G complement each other. Many major investors are making it loud and clear that pursuing long-term investment in sustainable and socially responsible companies is now a core part of their investment strategy. Companies that fail to understand this inevitable trend may risk losing the trust of investors,” said Ms. Loretta Fong, CPA (Practising), President of HKICPA and Chairman of Judging Panel of the Best CG & ESG Awards 2022.

“We aim to identify role models in the private and public sectors that set good examples for other companies and organizations to follow. They should be taking significant steps towards integrating CG and ESG considerations into their strategy, oversight and the implementation of their policies, procedures and controls. We will also recognize those entities that continue to uplift the standard of their disclosures and practices in at least one of these areas,” she added.

The highest level of Awards this year will be for the Most Sustainable Companies or Organizations. These are reserved for listed companies and public sector/not-for-profit organizations that demonstrate excellence in both their CG and ESG performances, and are integrating these two key aspects into their business model. For financial years beginning after 1 January 2022, under the revised Corporate Governance Code, the boards of listed companies should establish the company’s purpose, values and strategy, and ensure that these and the company’s culture are aligned with one another. Directors must act with integrity, lead by example and promote the desired culture. While these provisions were not yet in effect during the reporting year covered by the Awards, having the right culture and values in place is an essential part of having award-winning CG and ESG, explains Ms. Fong. “As Chairman of the Awards judging panel, I can say that the judges will be expecting the best companies and organizations to demonstrate that they already have a sound culture in place”, she added.        

Less than half of Hang Seng Index companies have a full-time qualified accountant on the board, almost 17% have no female board members

Among other recent changes put through by Hong Kong Exchanges and Clearing Limited (HKEX) to enhance CG standards and practices, existing listed companies with single gender boards will be mandated to appoint a director of a different gender no later than 31 December 2024 to enhance board diversity. To have a better understanding of the current situation, HKICPA recently conducted a brief research on the board diversity status of all Hang Seng Index (HSI) constituent companies for the year ended 31 December 2021. The study looked at gender, age and whether a “qualified accountant” or someone with financial expertise is sitting on the board.  

The research found out that only 40% of the companies have a qualified accountant who is an executive director, i.e. a full-time member of staff. HKICPA believes that having at least one qualified accountant as a member of senior management, preferably an executive director, could help facilitate the board’s financial reporting and decision-making processes and enable more effective board leadership.

“Previously, there was a requirement to have a qualified accountant as a member of senior management but this was dropped in 2009 in favour of having the board management conduct an annual review of the adequacy of staffing of the financial reporting functions and the oversight role of the audit committee. We hope that such a requirement will be reintroduced as qualified accountants are vital to helping the boards understand the implications of increasingly complex financial reporting and tax standards to the business, and are able to explain financial/ non-financial information more clearly to board members and stakeholders,” said Ms. Loren Tang, Chair of the Organizing Committee of the Best CG and ESG Awards 2022.

 “Many accountants are also in tune with developments in non-financial reporting, and with the establishment of the International Sustainability Standards Board (ISSB) under the umbrella of the International Financial Reporting Standards Foundation last November, the development of internationally-adopted sustainability disclosure standards is now on the agenda. An exposure draft of a climate standard has already been issued by the ISSB. A qualified accountant, particularly a member of the Institute, in an executive director position on the board would be able to help listed companies understand and implement these standards and to integrate their financial and non-financial systems and reporting. This is one of the keys to long-term sustainable development for companies, which, in turn, benefits wider society.” she explained.       

HKICPA’s research also found that on average around 14.8% of the directors of HSI constituents are female, which is far below an international benchmark of 30%, advocated by the 30% Club, one of the world’s largest and most influential organizations advocating for more women on boards. In fact, it is worth highlighting that nearly 17% of the companies have no women at all on their boards.

“The current gender imbalance in the composition of boards is something else that clearly needs to be addressed. Diversity is essential to bringing in innovative ideas and encourages better communication with stakeholders. The decisions made by boards with greater gender diversity tend to be more accommodative and well-thought-out according to international research,” said Mr. Patrick Rozario, Chair of the Review Panel of the Best CG and ESG Awards 2022. “Companies need to be more active in looking for suitable female, and also younger, candidates for their boards”, he added. 

Ms. Fong agreed. “There are many well-qualified women in the accounting profession and more women are joining the profession. The composition of younger members of the Institute currently reflect more women than men joining the profession,” she supplemented.” 

HKICPA will be conducting a broader research on all the December year-ended listed companies for 2021, and will share the findings with our members and the public in due course.

The Best Corporate Governance Awards were first organized in 2000. Last year, the Awards were revamped and renamed the Best Corporate Governance and ESG Awards, enhancing its standing as one of Hong Kong’s most prestigious and sought-after awards. This year, companies and organizations will again be judged in seven main categories, covering HSI-constituents and other listed companies and public sector organizations of different sizes. The judging criteria look beyond the minimum statutory and regulatory requirements to identify voluntary disclosures and practices.

This year, HKICPA explored inviting a limited amount of financial sponsorship for the Awards, and was pleased to receive considerable interest in sponsorship from CPA and other professional consultancy firms (see Note 1). HKICPA expresses its appreciation for their support and that of the Awards’ media sponsors (see Note 2). For more details of the Awards, please visit: https://www.hkicpa.org.hk/BCGESGA

Note 1: list of sponsors (in alphabetical order)

1.    Ace Sustainability & Risk Advisors Ltd.

2.    AVISTA Group

3.    BDO

4.    Charles Lo & Co.

5.    CityLinkers Group

6.    Deloitte Touche Tohmatsu

7.    Ernst & Young

8.    Grant Thornton Hong Kong Ltd.

9.    HLB Hodgson Impey Cheng Ltd.

10.  KPMG

11.  Mazars

12.  Moore Stephens CPA Ltd.

13.  PricewaterhouseCoopers

14.  Riskory Consultancy Limited

15.  RSM Hong Kong

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

1.    ET Net

2.    Hong Kong Economic Times

3.    The Standard

香港會計師公會邀請機構參加「最佳企業管治及ESG大獎2022」

公佈有關恆指成份股公司董事會多元化的調查結果重點

（香港，二零二二年七月十五日） 對上市公司及公營機構而言，融合企業管治與環境、社會及管治（ESG）是應對未來挑戰及維持長遠可持續發展的其中一項重要因素。當大型企業及機構把工作方向聚焦於其長遠成果，以及與持份者持續溝通及聯繫，先於追求短期盈利時，亦可為社會未來的可持續發展帶來貢獻。在這背景下，香港會計師公會（公會）欣然宣佈舉辦年度大獎 －「最佳企業管治及ESG大獎2022」。

本年度獎項現接受報名，歡迎上市公司、公營及非牟利機構參與，截止日期為二零二二年八月十日。

香港會計師公會會長兼「最佳企業管治及ESG大獎2022」評審團主席方蘊萱執業會計師表示：「企業管治與環境、社會及管治各元素互補。現時很多主要投資者均明確表示，長遠投資於具可持續性及社會責任的企業，已成為他們投資策略的核心部份。企業若未能了解此不可逆轉的趨勢，或會使他們失去投資者的信任。」

方女士補充：「我們的目標是確立在公私營界別的模範，讓其他企業及機構跟隨。有關模範企業及機構需要採取有效行動，將企業管治及ESG融入其策略，及政策、程序與監控的實施與審視。我們亦會嘉許在企業管治或ESG至少其中一個範疇上，持續提升披露及實務的企業及機構。」

本年度大獎的最高榮譽為「最佳可持續發展公司／機構獎」，將嘉許於企業管治及ESG方面均表現卓越，並能將這兩大範疇融合其商業模式的上市公司、公營及非牟利機構。根據修訂的《企業管治守則》，由二零二二年一月一日後開始的財政年度，上市公司董事會需要為公司建立目的、價值及策略，並確保與其企業文化一致。董事們須持正不阿、以身作則，致力推廣企業文化。方女士補充：「雖然以上條款在今年大獎的評審年度內仍未生效，惟獲獎的機構需要具備適切的文化及價值觀。作為大獎評審委員會主席，我認為評審團均期望最佳的企業及機構應已擁有理想文化。」

少於一半恆指成份股公司董事會擁有全職合資格會計師  近17%沒有女性董事

在近期香港交易及結算所有限公司（港交所）所提出的提升企業管治標準及實務的措施中，如現存的上市公司只有單一性別的董事會，須在二零二四年十二月三十一日或之前委任至少一名其他性別的董事，以提高董事會的多元化。為更了解現況，公會最近進行了一個簡短調查，了解所有恆生指數成份股公司於截至二零二一年十二月三十一日的年度内，其董事會多元化的情況。是次研究調查了董事會成員的性別、年齡，及是否有「合資格會計師」或具備金融專業知識。

調查發現只有40%的公司僱用了有會計師資格的執行董事（即全職員工）。公會相信，擁有至少一名具備會計師資格的高級管理人員甚或執行董事的企業，將有效促進董事會的財務匯報工作及決策過程，並提升董事會的領導效能。

「最佳企業管治及ESG大獎2022」籌委會主席鄧苑儀表示：「過往有規定要求企業至少需要有一位的高級管理人員為合資格會計師。然而，有關規定於二零零九年被取消；取而代之是將相關的責任交給董事會。董事會須每年檢視財務匯報人手是否足夠及說明審核委員會的監察角色。我們希望能夠再次引入相關規定，因為合資格會計師能夠協助董事會了解越見複雜的會計及稅務標準對營運的影響，亦可為其他董事會成員及持份者講解財務和非財務資訊。」

鄧女士續指：「很多會計師緊貼留意非財務性匯報的發展；隨著國際財務報告準則基金會旗下的國際永續準則理事會（ISSB）於去年十一月成立，制訂國際採納的可持續性披露準則已被納入議程。ISSB已發出一份有關氣候標準的徵求意見稿。在上市公司董事會中具會計師資格的執行董事尤其是公會的會員能夠協助公司董事會了解及推行這些準則，並於其財務及非財務系統與匯報進行融合。這能夠有效帶動企業的長遠可持續發展，並為社會帶來裨益。」

公會的研究亦發現恆指成份股公司當中，平均約有14.8% 的董事為女性，遠低於由倡議更多女性加入董事會的國際機構30% Club 所建議的30%國際標準。事實上，現時有接近17%公司的董事會並沒有女性成員。

「最佳企業管治及ESG大獎2022」遴選委員會主席羅柏達先生表示：「現時董事會組成的性別不平衡情況值得關注。多元化能引進創意思維及鼓勵與持份者有更好的溝通。國際性研究亦指出，性別更多元化的董事會傾向更具包容性及考慮更周詳。企業需要更主動羅致合適的女性，及更年輕的人選加入董事會。」

方女士同意並指出：「現時有很多優秀的女性已投身會計專業界別，與此同時有更多女性投身會計行業。再者，於公會較年輕的會員群組之中，我們看到有更多女性投身會計專業。」

公會將會進行一個更具規模的研究，深入了解於二零二一年十二月年結的上市公司情況。有關研究結果將會適時向公會會員及公眾發佈。

「最佳企業管治大獎」於2000年首次舉辦。去年大會修訂及重新命名獎項為「最佳企業管治及ESG大獎」，使獎項繼續成爲香港最受推崇及歡迎的獎項之一。今年參與大獎的企業及機構將競逐七個類別的獎項，涵蓋不同規模的恆指成份股公司、其他上市公司及公營機構。評審將審視機構優於最低法定水平及監管要求的自願披露水平及實務。

公會於本年度首次為大獎引入少量財政贊助，喜見大獎獲得眾多註冊會計師及專業諮詢機構的支持（見註一）。公會衷心感謝他們及媒體合作夥伴的支持（見註二）。有關大獎的詳情，請瀏覽 https://www.hkicpa.org.hk/BCGESGA 。

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.       勞啟明會計師行

5.       連城集團

6.       德勤 · 關黃陳方會計師行

7.       安永會計師事務所

8.       致同（香港）會計師事務所有限公司

9.       HLB國衛會計師事務所有限公司

10.    畢馬威會計師事務所

11.    中審眾環（香港）會計師事務所有限公司

12.    大華馬施雲會計師事務所有限公司

13.    羅兵咸永道會計師事務所

14.    Riskory Consultancy Limited

15.    羅申美會計師事務所

註二：媒體合作夥伴（按英文字母排列）

1.       經濟通

2.       香港經濟日報

3.       英文虎報