Enhance your ESG Knowledge

Sustainability reporting in Hong Kong SAR is moving from a stand-alone “ESG report” mindset to a more investor-grade disclosure model (similar to traditional financial figures based disclosure and audit requirements...) aligned with the International Sustainability Standards Board (ISSB). The main references are IFRS S1 (general sustainability-related financial disclosures) and IFRS S2 (climate-related disclosures). Together, they ask companies to explain—clearly and consi

A carbon tax is a government charge placed on greenhouse-gas (GHG) emissions , usually applied to fossil fuels based on their carbon content (e.g., per ton of CO₂e ). The policy goal is to raise the cost of emitting so companies and consumers shift to lower-carbon options, while generating public revenue that can be recycled through rebates, tax cuts, or climate spending. Carbon taxes typically work in two ways: Upstream fuel tax : levied on coal/oil/gas producers or import

A Noisy ESG Moment and backlash In many markets, “ESG” has become a contested label and even ESG backlash.... Some companies are reducing public ESG messaging (green hushing); some investors are adjusting how they talk about responsible investment; and regulators are scrutinising sustainability claims more aggressively. This has created a perception that ESG is “slowing down.” In practice, the opposite is happening: expectations are becoming more disciplined, more evidence-

Moving from Targets to an Investable, Verifiable Transition What “durable net zero” means in 2026 “ Net zero ” has been on corporate agendas for years, but the hot topic now is durability —whether a company’s pathway can survive scrutiny, market shocks, and changing regulation . Durable Net Zero refers to achieving net‑zero greenhouse gas emissions in a way that is long‑lasting, credible, and resilient over time Durable net zero goes beyond announcing a 2050 ambition. It is a

A Solar Success Story—and a Wake-Up Call for APAC Energy Planning (and ESG) If you’ve been following the clean-energy transition, you may have heard the term “duck curve.” It sounds casual, but it describes a very real operational challenge that shows up when a power system adds lots of solar PV in a short period of time—something many APAC markets are actively doing. What is the duck curve? The duck curve is a chart of net load —the electricity that the grid must supply a

What CBAM is (professional definition) The EU Carbon Border Adjustment Mechanism (CBAM) is a carbon-pricing policy that applies to certain imports into the European Union , intended to reflect the carbon cost that EU producers already face under the EU Emissions Trading System (EU ETS) . Put simply, CBAM requires EU importers (and, indirectly, their non‑EU suppliers) to report embedded greenhouse gas emissions in covered goods and, over time, pay a charge via CBAM certificate

1) What’s making headlines in green sustainable finance One of the most talked-about sustainability developments right now is how quickly ESG-linked financing  is shifting from broad commitments to hard, measurable performance targets . Across Asia-Pacific (including Hong Kong), lenders and investors are becoming more cautious about vague “ green ” positioning. As a result, sustainability-linked loans and bonds are increasingly written with clearer KPIs, stricter definitions,

AFRC Consults on Sustainability Assurance in Hong Kong (Dec 2025): Hong Kong’s Accounting and Financial Reporting Council (AFRC) released a December 2025 consultation paper  proposing a regulatory framework for sustainability assurance . The consultation aligns with Hong Kong’s direction under the Government’s Roadmap on Sustainability Disclosure in Hong Kong (Dec 2024) , which sets a pathway for large publicly accountable entities (PAEs) to adopt ISSB-aligned disclosure stan

Why nature risk is turning into a finance conversation in APAC This topic echoes a question a university student asked me during an ESG sharing session: beyond climate, what should we pay more attention to in 2026? Biodiversity and nature-related risk has moved beyond “ESG reporting” and into the practical mechanics of credit . In APAC, the link is especially direct: several economies depend heavily on land, water, fisheries, forestry, and agriculture, while rapid urban growt

Sustainability reporting has moved from a “nice-to-have” communications exercise to a board-level conversation about capital access, risk pricing, and strategic resilience. A timely new evidence base helps put numbers behind that shift. On 16 December 2025, GRI published a literature review titled From impact to income: How sustainability reporting affects the bottom line. Instead of relying on anecdotes, the report synthesizes findings from 30 peer‑reviewed empirical studies

Sustainable investing (often grouped under ESG: Environmental, Social, and Governance ) is an approach to investing that aims to earn competitive financial returns while also considering a company’s long-run effects on society and the environment . Instead of looking only at revenue, profit, and growth, sustainable investors also evaluate factors like carbon emissions, worker safety, supply-chain labor practices, board oversight, and business ethics. sustainable investing! W

For years, climate has been the center of gravity in corporate sustainability. That’s changing fast. In 2026, “nature” ( biodiversity, land use, water, and deforestation ) is moving from a specialist conversation into mainstream risk and strategy—because companies are realizing a simple truth: climate resilience depends on healthy ecosystems, and many supply chains depend on nature whether or not it appears on a balance sheet. This is why nature-related disclosure and due dil

With no doubt, Scope 3 has become the pressure point for many Asia-Pacific companies because the emissions sit outside your own operations , yet the consequences show up in tenders, customer scorecards, loan conversations, and reputational risk. Scope 3 Caterogies: the 15 essentials What used to be a “sustainability report” topic is now a commercial requirement: Buyers want product footprints and credible reduction progress. Banks and investors increasingly want transition ev

Introduction: From “ ESG as a report ” to “ ESG as a management system ” With 2025 behind us, what ESG and sustainability changes and requirements should we expect in 2026? By 2026, ESG in Asia is expected to move further away from being a communications exercise and closer to a daily management discipline that affects budgets, risk controls, product design, and talent strategy. For many organizations, the question will shift from “Do we have an ESG report?” to “Can we defend

The UK’s Transition Plan Taskforce (TPT) is a government‑backed initiative established in April 2022 to help organizations develop and disclose credible, consistent, and actionable climate transition plans . It was created by HM Treasury and is co‑chaired with the UK Financial Conduct Authority (FCA) . The TPT’s purpose is to ensure that entities operating in the United Kingdom—particularly financial institutions and publicly listed companies—can clearly demonstrate how th

Grid Innovation  is one of the most important and fast‑moving areas of sustainability and energy transition today. Let’s look into more details today. What Is Grid Innovation? Grid Innovation  refers to the modernization and smart transformation of the electrical power grid  — the system that generates, transmits, and distributes electricity — to make it more flexible, efficient, and sustainable . Traditionally, power grids were designed for one‑way electricity flow  (from l

What is AI‑Driven ESG Reporting? AI‑driven ESG reporting  refers to the use of artificial intelligence tools and algorithms  to collect, analyze, and present data related to a company’s Environmental, Social, and Governance (ESG)  performance. ESG reporting allows companies to communicate how responsibly they operate—for instance, their carbon emissions, labor practices, diversity policies, and transparency in leadership. When AI is involved, the process becomes faster, more

🌱  “Green Christmas” in the Context of ESG and Sustainability In the field of ESG (Environmental, Social, and Governance)  and sustainability , the phrase “ Green Christmas ”  refers to efforts to celebrate the Christmas season in an environmentally responsible and socially conscious manner . It is about reducing the negative environmental impacts  that often accompany traditional holiday celebrations and promoting sustainable consumption, ethical practices, and community we

What Is a Living Wage Benchmark ? A Living Wage Benchmark is a data‑driven reference wage level that estimates the minimum income required for a worker to afford a decent standard of living in a specific country, region, or city. Unlike statutory minimum wages , living wage benchmarks are: Needs‑based , not politically negotiated Location‑specific Designed to cover basic but dignified living costs These benchmarks are widely used in ESG, human capital management, and suppl

What is ESRS? ESRS stands for European Sustainability Reporting Standards. They are the mandatory ESG reporting standards that companies must use under the EU’s Corporate Sustainability Reporting Directive (CSRD) . ESRS define what sustainability information companies must disclose, how, and with what level of rigor , covering environmental, social, and governance (ESG) topics. Brief History of ESRS 1. Origins (2019–2022) ESRS emerged from the European Green Deal and the