Sustainability Services

ESG Trends in Asia

Hong Kong Exchange – Amendment to ESG reporting and listing rules

Listed companies have to provide ESG data in a timely manner, enhance board engagement, and report the potential impacts of climate change

China – CSRC Emission Disclosure

Heavy emitter required to disclose emissions and all listed companies to disclose E&S data (voluntary)

As a UNESCO approved Certified Sustainable Development Corporation, TQM believes that sustainable development is essential to the continued growth of the company; rather than focus on short-term profits, we instead consider the long-term benefits of interdependence and ecological innovation.

FIRST Batch of Certified Sustainable Development Corporation dedicated to promote and advocate sustainability core competencies in corporations and DESIGNATED for sustainability core competencies development training

TQM’s global network of climate change and sustainable practices can help you build long-term value in a rapidly changing world. We aim to do things differently and challenge the traditional consulting model and we are the ONLY consulting company delivering concrete and measurable results that enable the real ESG excellence in your organization.

Developing a sustainability strategy...

Sustainability or corporate responsibility strategy is a prioritised set of actions. It provides an agreed framework to focus investment and drive performance, as well as engage internal and external stakeholders. Strategy needs to flow from the corporate aims. A genuine link to the company’s overall objectives provides a foundation on which to build the aspirations, reflect the culture and focus on the right priorities, whereas a vision, mission and values provide the building blocks on which to reflect corporate culture and direction.

Identifying the issues that matter...

a rigorous process of materiality is essential to identifying the issues that matter most to the company as well as its stakeholders. Good strategy involves not just prioritisation, but making a decision to really focus on certain issues. Although all the choices can seem complex, the best strategies converge on a few priorities.

Prioritising effectively...

A good strategy needs to have a hierarchy and a focus. The focus needs to be on the right issues that are most material for the company. Having arrived at the right priorities, the company should be able to channel its investment into a small number of key areas. An effective framework should group together the different issues and explain how the company plans to address them. This not only helps with implementation and the targeting of resources but also makes engagement and communication of the strategy much more effective.

Targets and KPIs...

Targets are the backbone of an effective sustainability strategy and Goals provide a focal point for those inside and outside of the business. They provide a clear set of objectives for management, and a yardstick by which external audiences can judge progress. Wherever possible, it is more impactful to commit to numbers, such as a percentage of employees, factories or suppliers that will adhere to standards. Above all, companies need to avoid vague promises that are not possible to measure nor report progress against in a robust way.

Engagement and Implementation...

Effective implementation involves providing guidance to employees following extensive consultation and putting in place systems of governance, external feedback and regular review. A clear guidance on what sustainability means and what the new strategy means should be provided and a formal system of accountabilities should be put in place to oversee the strategy. Taking the strategy to external stakeholders can build advocates for the company, and also create a more resilient approach by responding to stakeholder views. Amid all the external pressures and insights, businesses should not lose sight of the need to create business value.

  • The Highest Energy Consumption Single Building: T1 Terminal
  • Electricity Consumption ↘11%
  • Support AAHK and 53 business partners in the Carbon Reduction Programme
  • Promote Waste Management and Food Angel Programme

ISO 50001 Certification Ceremony

  • EMS ISO 14001 and EnMS ISO 50001
  • Electricity Consumption of Air-conditioning ↘8%/ year
  • Electricity Consumption of Lighting ↘40,000 kWh/ year
  • Electricity Consumption of Lift Motor System ↘30%/ year
  • Maintained and achieved continuous improvement

Key Building of Bank of China (Hong Kong)

Highest Ranking in Hong Kong Business and Greater China Business Sustainability Index in the Banking Industry

FAQs

What are SDGs?

SDGs are part of the United Nations 2030 Agenda for Sustainable Development. They are a series of 17 goals to be completed by 2030 as a part of transitioning to a new global circular economy. These concepts used to be the remit of government, including:

  • Sustainable Economies
  • Sustainable Cities and Communities
  • Responsible Consumption and Production
  • Affordable and Clean Energy
  • Gender Equality
  • Climate Action
What is the relationship between SDGs and ESG?

SDGs (Sustainable Developn1ent Goals) are global goals set out by the United Nations, and there are currently 17 SDGs help guide companies and organizations through achieving sustainable development practices.

ESG is a rating system used by companies to measure their environmental and social credentials, providing guidelines in helping determine whether a product/ service is contributing positively (positive externalities) to the environment, society, and governance of an organization. 

The main differences are as follows:

  • SDGs focus on long-term solutions and are at a more high level, focusing on specific targets around the world.
  • ESG measures how well a company is performing in terms of its social and environmental responsibilities throughout its operations and holds companies accountable for their actions.

SDGs work together with ESG by providing guidelines on how an organization can achieve sustainable development goals within their company, products, and services.

More and more ESG reports have referred to UN SDGs over the past years. As of 2020, nearly 30% of listed companies sampled have applied UN SDGs as the cornerstone of their ESG work. Beyond a simple, static reference to UN SDGs in ESG reports, companies have also identified key UN SDGs that are mapped to their businesses and set related targets. Further, the 17 goals were integrated into actual ESG practice to set up, guide, communicate and report companies’ ESG strategies, targets and activities, thus forming a long-term mechanism for ESG transformation.

Why are businesses using SDGs and ESG?

For many organizations, the question of how to drive an enterprise-wide culture of sustainability is a crucial one. It is suggested that the United Nations’ Sustainable Development Goals (SDGs) — and the 169 targets they include — are an increasingly important part of this process. Indeed, 68% of respondents say they embed the SDGs into their strategic planning in some way.

For many businesses, the SDGs provide a tangible means through which to move their ESG activities. and important credibility with external audiences as stakeholder capitalism has become increasingly prevalent and consumers are becoming ESG-conscious, reputation and credibility can be a strong motivating factor for businesses to turn their attention to ESG.

Amid the rising awareness of ESG issues, Asian governments (including China and Hong Kong) are prioritizing ESG related regulations, incorporating SDGs into the guideline and developing rules to push forward more accountable and sustainable development of companies.

Going beyond regulatory compliance, companies are now incorporating various international reporting standards and frameworks (e.g. UN SDGs and GRI, etc) to facilitate the future development of their ESG and/or sustainability report and accommodate the regulation changes.

Why are they important to businesses?

CUT COST

Ensuring legal compliance while reducing the effect of climate change can help to cut costs and save money​

INCREASE ACCESS TO CAPITAL

Better internal governance and higher company rank in sustainability can help gain access to financial captital

RISK REDUCTION

Understanding operations helps to reduce environemntal, social and financial risks

IMPROVE EFFICIENCY

The process of gathering information help to make better decision and operate more efficiently.

CBETTER REPUTATION

Transparency is one of the key factors companies find helps them build trust amongst stakeholders

INNOVATION OPPORTUNITY

Discovering areas of excellence and improvement can help stimulate innovation