The Hong Kong Trade Development Council (HKTDC) has introduced a new index evaluating the city’s ability to deliver ESG-related products and services.
The HKTDC ESG Index measures perceptions of Hong Kong’s ESG capabilities among local, Mainland Chinese, and international businesses.
“We believe this index will enhance understanding of the business world’s focus on sustainable operational models and highlight Hong Kong’s meaningful contribution to this global shift,” said Irina Fan, Director of HKTDC Research.
Initial findings assigned Hong Kong an aggregate score of 64.3, significantly above the neutral benchmark of 50. The assessment, based on surveys with over 1,200 buyers and exhibitors at HKTDC trade fairs and business events, revealed differences in perception across geographical regions.
In terms of environmental performance, Mainland Chinese respondents credited Hong Kong’s strengths to investment opportunities in sustainable sectors. International businesses rated the city highly for its diverse range of green and sustainable solutions, while local firms emphasised the quality and innovation of its ESG-related offerings.
For the social aspect, Mainland businesses valued Hong Kong’s ESG expertise and talent, as well as its role in facilitating cross-border ESG knowledge exchange. Meanwhile, both international and local respondents praised the city’s business engagement in community development and social welfare initiatives.
On governance, all participants recognised Hong Kong’s strong role in international ESG collaborations, particularly in setting global standards and providing market access. Mainland respondents also noted the city’s effective ESG reporting frameworks and regulations.
The research also highlighted the commercial advantages of ESG adoption. Nearly 90% of respondents acknowledged ESG as a key factor in their business decisions.
All buyers of ESG-compliant products and services indicated a willingness to pay a premium, with 68% prepared to pay at least 10% more. Prioritising ESG-friendly solutions was seen as beneficial for corporate reputation, regulatory compliance, and risk management.
Among vendors offering ESG-related products and services, all reported higher profit margins compared to non-ESG offerings. Around 72% said these margins were 10% or more above those of conventional products, underscoring the growing demand for sustainability-driven solutions.
The HKTDC ESG Index is based on surveys conducted at seven HKTDC trade fairs and business events between April and December 2024. The full study will conclude in March, with the inaugural edition of the index set for release thereafter.
