According to the third party description, Environmental, social and governance (ESG) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies.

Corporates equipped with ESG strategy is set to benefits from a sustainable business model, and it is also contributing to the local community at the same time by giving away portion of their revenue as charity. A greener and socially responsible operation can be achieved as a result.

As a way of risk management, Corporates are also utilizing ESG as one of the measuring tools to evaluate operation efficiency, and identify areas with potential risk for improvement.

• Mandatory requirement from the Hong Kong Exchanges and Clearing Limited for all listed companies to report on ESG performance (1 Jan 2016)
• Proactive management and avoidance of potential operation risk
• Improve client and investor relationship with clients from proactive engagement
• Avoid in-accurate information leading to stock price impacts
• Differentiate from Competitors with Brand and Value Recognition