Best Corporate Governance and ESG Awards 2024
The Hong Kong Institute of CPAs successfully concluded its Best Corporate Governance and ESG Awards 2024 with the presentation luncheon ceremony held at the JW Marriott Hotel on 25 November 2024.
The president of the Institute and the chair of the judging panel, Mr. Roy Leung, presented the trophies to the winning companies and public sector organizations (PSOs) at the presentation ceremony of the Institute’s 2024 Best Corporate Governance and ESG Awards (the Awards) (see the press release). These included the winners in the top tier of accolades, the Most Sustainable Companies/ Organizations (MSCO) Awards, which recognize listed companies and PSOs that demonstrate excellence in both corporate governance (CG) and environmental, social and governance (ESG) practices and disclosures 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.
Mr. Carlson Tong, chairman of Hong Kong Exchanges and Clearing Limited, who was the guest of honour of the ceremony, remarked in his speech: "CG and ESG help businesses to play a crucial role in navigating global megatrends. And this is something that is expected by investors, customers, employees and society at large. Their success is intertwined with the sustainability of the economies and communities they operate in. To thrive, businesses must integrate CG and ESG principles into their operations.”
He continued, “Congratulations to all award winners and I hope your success will serve as an inspiration and that your efforts will serve as a roadmap to excellence in CG and ESG for the long-term sustainability of our economy, market and community.”
Mr. Roy Leung, who also spoke at the event, said:
- “The Institute has been a strong advocate for best practices in CG in Hong Kong for three decades and, since their inception, the Awards have helped to promote our work in this area, while highlighting the vital importance of good CG and, now also ESG, for the development of the Hong Kong market. We have seen a great deal of positive change among companies and organizations over these years.”
- “Strong CG and ESG practices benefit companies and PSOs, by giving greater assurance to their investors and stakeholders and improving their decision making. A sound CG and ESG culture also contributes to a more sustainable way of living and helps to safeguard society and the environment for future generations.”
The speakers expressed appreciation for the invaluable contributions of the judges, reviewers, organizing committee members, Institute management staff, and others involved in helping to ensure the success of the Awards. They also thanked the supporting organizations, many of which provided judges and reviewers, and a number of which also generously provided financial sponsorship. They also thanked the media sponsors of the Awards. All are recognized in the Judges’ Report.
The event was again MC-ed adeptly by Mr. Adam Wong, who gave a brief overview of the Awards process before introducing the representatives from the winning companies and organizations, who went up to the stage to receive their trophies from the Institute’s president and judging panel chair.
A record number of 38 companies and PSOs received awards, highlighting the improving quality of CG and ESG standards among Hong Kong companies and organizations. The efforts of the winners to continuously enhance their CG and ESG performance helps to further establish benchmarks of high-quality CG and ESG practices in Hong Kong. In addition to the record number of companies and PSOs receiving awards, there was an increase in the winners of the MSCO Awards, compared with the previous year, and HKICPA congratulates the 13 MSCO Awards winners. Among these, CLP Holdings Limited, a platinum award winner in the Hang Seng Index (HSI) category, continues to set a high benchmark for CG and ESG performance among listed companies in Hong Kong. Another platinum-award-winning listed company was Prudential plc, in the large market capitalization category. Additionally, AIA Group Limited, Swire Pacific Limited, and AAC Technologies Holdings Inc. were first-time MSCO awardees.
In the CG Awards section, there were a total of 11 winning companies and organizations, including three first-time awardees – ANTA Sports Products Limited, Bank of East Asia, and GCL Technology Holdings Limited. In the ESG Awards section, there were a total of 14 winning companies and organizations, including two first-time awardees – Sun Hung Kai Properties Limited and HK Electric Investments Limited. The Institute congratulates all the winners in these two sections of the Awards as well.
The full list of winners is contained in the Judges’ Report. There are also commentaries on the individual awardees, and other background information on the Awards. You may also access to our Gallery for more photographs taken in the presentation ceremony.
Directors, chief financial officers and other senior management staff were among representatives of the winning companies and organizations who attended the Awards luncheon to receive the trophies. Visuals showing examples of the scope and the quality of presentation of information contained in the Annual and Sustainability/ ESG Reports of the awardees were displayed during the presentation ceremony.
This was the 25th edition of the Awards, which were launched in 2000. Originally called the Best Corporate Governance Awards, the competition focused initially on CG disclosures only. Awards for sustainability and social responsibility reporting were introduced in 2011 and the competition was revamped and renamed in 2021, with the introduction of the MSCO section.
The Awards are among Hong Kong’s most prestigious business-related competitions, setting benchmarks of best practice in CG and ESG for listed companies and PSOs, and encouraging improvements in overall standards. They enjoy strong support from the government, financial market regulators, investor groups, the business and professional community and academia. They emphasize the need for organizations to be transparent and accountable and to engage shareholders, investors and other stakeholders, including the communities in which they operate. The objective is, ultimately, to support Hong Kong’s continued development as a international financial and business centre, as the Institute is firmly of the view that upholding high standards of governance and sustainability in both the business and public sectors is critical to maintaining Hong Kong’s standing and reputation.
The focus of the Awards is on the voluntary adoption of standards of practices and disclosures that significantly exceed the minimum legal and regulatory requirements. While the immediate focus is information disclosed in Annual Reports and Sustainability/ ESG Reports, and, in total around 500 reports were examined during the 2024 Awards, ultimately, the judges and reviewers are trying to ascertain whether good CG and ESG are truly ingrained in an organization’s DNA, and to identify companies and PSOs that demonstrate a strong CG and ESG culture, and a commitment to long-term sustainable success. This being the case, the judges and reviewers will also take account of other public information, such as news information, where relevant, that may provide further evidence of how individual companies and PSOs are being run in practice.
Information Technology and Cybersecurity Governance
In view of the growing importance of information technology (IT) and cybersecurity governance, the Awards’ reviewers and judges also considered the quality of cybersecurity-focused disclosures, for the first time, this year, as part of the revised assessment criteria. For the same reason, alongside the Awards, this year, the Institute conducted a short research study on the prevalence and quality of IT and cybersecurity reporting, across the 82 HSI-constituent companies. Though 83% of HSI companies made some form of disclosure specifically relating to cybersecurity, or related topics, such as information security and privacy protection, in their Annual or Sustainability/ ESG Reports, much more could be done to improve the quality of those disclosures, so as to give greater reassurance to investors and stakeholders, including regulators, that sensitive customer and company data and systems are being adequately safeguarded.
Based on the research findings, the Institute calls for companies to consider how cybersecurity-focused disclosures can be improved in their Annual or Sustainability/ ESG Reports. This includes ensuring that disclosures are specific and company-focused, linked to business risks, and cover key areas, such as the company’s IT and cybersecurity strategies.
Please refer to the cybersecurity report, Securing a Cyber Future – Current Landscape of IT & Cybersecurity Governance in Hong Kong, for details.
