KPMG welcomes the report released today by the Financial Services Development Council, which recommends a strategy for environmental, social and governance (ESG) to strengthen Hong Kong’s position as an international financial centre.
Bonn Liu, ASPAC Head of Asset Management and Hong Kong Head of Financial Services, says: “ESG or sustainable investment has experienced exponential growth globally in the last few years as institutional investors are placing a greater focus on sustainable investment. It is crucial for Hong Kong to review its current initiatives to foster an environment that facilitates ESG investment to align with international trends.”
Various studies and research reports show that integrating ESG factors into decision making allows companies to identify, mitigate and manage risks, which in turn enhances the medium to long-term risk-adjusted return of a company. Meanwhile, a strong ESG profile reflects the strength of corporate governance which could help attract investors, both for investment managers and investee companies in Hong Kong. A robust ESG strategy also allows Hong Kong’s financial market to remain competitive.
“Multiple measures can be introduced to encourage the development of an ESG ecosystem in Hong Kong. Public funds – including the Exchange Fund managed by the Hong Kong Monetary Authority – play a particularly important role considering the multi-trillion dollars worth of assets under management,” says Liu. “There would be a significant knock-on effect if the government can take a leading role by encouraging public funds to support ESG integration in investment decisions.”
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KPMG member firms and its affiliates operating in Mainland China, Hong Kong and Macau are collectively referred to as “KPMG China”.
KPMG China is based in 21 offices across 19 cities with around 12,000 partners and staff in Beijing, Changsha, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Wuhan, Xiamen, Xi’an, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 154 countries and territories and have 200,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG’s appointment for multi-disciplinary services (including audit, tax and advisory) by some of China’s most prestigious companies.