HKEX has completed its review of issuers’ compliance with the ESG Guide. The review analysed the disclosures made by 400 issuers. Below are some key findings:
Non-compliance
- Issuers did not give considered reasons for non-disclosure in relation to an Aspect. HKEX stated that it is a Listing Rule requirement to report on the “Comply or Explain” provisions under the Aspects and non-compliance without giving considered reasons amounts to a breach of the Listing Rules.
Information on compliance with laws and regulations
- Both disclosures on policies AND information on compliance with laws and regulations are required under the same Aspect.
- For Aspects where there are no relevant laws and regulations that have a significant impact on the issuer, the ESG report should state so to avoid a breach of the Listing Rules.
- Where there are laws and regulations relevant to the issuer’s particular industry and which may have a significant impact on the issuer, the issuer should not simply state in its ESG reports that “we have complied with all laws and regulations”. The ESG report should specify the relevant laws and regulations and ways in which the issuer has ensured compliance so as to meet the disclosure requirement.
