Enhance your ESG Knowledge

1. What is the CSRD? The Corporate Sustainability Reporting Directive (CSRD) is a landmark piece of European Union legislation that fundamentally changes how companies report on sustainability. It replaces the older Non-Financial Reporting Directive (NFRD) , significantly expanding the scope, detail, and rigor of reporting requirements. Its primary goal is to put sustainability reporting on par with financial reporting , ensuring investors and stakeholders have access to co

What is ESG Alpha? Alpha should sound familiar to all the finance professionals, especially in investment and portfolio management field. Then how about "ESG Alpha"?? ESG Alpha is a financial concept that refers to the excess returns (or "alpha") generated by an investment strategy that specifically integrates Environmental, Social, and Governance (ESG) factors. In traditional finance, "Alpha" measures an investment's performance relative to a benchmark index (like the S&P

As one of the world’s most densely populated vertical cities, Hong Kong faces unique challenges in the global fight against climate change. In response to the Paris Agreement and national directives, the Hong Kong Special Administrative Region (HKSAR) Government released "Hong Kong’s Climate Action Plan 2050" in October 2021. This ambitious blueprint sets a definitive target: to achieve carbon neutrality before 2050 , with an interim goal of reducing carbon emissions by 50%

Lost Time Injury Frequency Rate (LTIFR) is a key workplace safety metric used to measure the frequency of injuries that result in employees being unable to work their next scheduled shift. (at least one full workday.) Calculated as the number of lost time injuries per one million hours worked, LTIFR provides a standardized way to assess safety performance across different sites, industries, and time periods. ==> A important "Social" factor that required and need to be disclo

The Intergovernmental Panel on Climate Chan (IPCC) AR (Assessment Report) is the United Nations’ most comprehensive scientific evaluation of climate change. Here is a quick explanation: What it is: A major report published every 6–7 years by the Intergovernmental Panel on Climate Change (IPCC). It summarizes all the latest scientific research on climate change. What it covers: How and why the climate is changing Impacts on ecosystems, economies, and societies Future climate

The official bible for building owners and managers to quantify, report, and manage greenhouse gas (GHG) emissions and removals within building operations. Brief Introduction The Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong were jointly issued by the Environmental Protection Department (EPD) and the Electrical and Mechanical Services Department (EMSD) . First publ

ESG Key Performance Indicators (KPIs) are quantifiable metrics used by organizations to measure and communicate their performance on environmental, social, and governance priorities. These indicators help companies monitor progress toward sustainability goals, identify risk areas, and demonstrate transparency to regulators, investors, and stakeholders. Common ESG KPIs include environmental measures such as greenhouse gas emissions, renewable energy use, and waste recycling;

Implied Temperature Rise (ITR) is a metric used in ESG and climate finance to estimate how much global temperatures would increase by 2100 if the whole economy behaved like a given company, portfolio, or investment . It translates emissions performance and climate targets into an easy‑to‑interpret temperature score (e.g., 1.5 °C, 2.7 °C, 4 °C). What ITR Represents ITR answers the simple question: “ If all companies followed the same emissions pathway as this one, what level

The LEAP process in ESG and sustainability (especially in frameworks such as the Task Force on Nature‑Related Financial Disclosures [TNFD] and broader environmental‑risk management ) stands for a structured approach used by organizations to identify, assess, and manage nature‑related or sustainability‑related impacts, dependencies, risks, and opportunities . It serves as a practical method for integrating environmental and social considerations into business strategy and

In ESG and sustainability, DNSH stands for " Do No Significant Harm ." It means that while pursuing a sustainability objective (such as reducing carbon emissions), an activity must not significantly harm other environmental or social goals. For example, a renewable energy project should not cause major harm to biodiversity or local communities. This principle is commonly used in EU Taxonomy and global sustainability reporting frameworks. Examples of significant harm In oppos

In ESG and sustainability, taxonomies refer to classification systems that define what counts as environmentally sustainable , socially responsible , or well‑governed economic activities. In simple terms: A taxonomy is a rulebook that tells investors which activities are truly “green” or “sustainable.” These taxonomies help: prevent greenwashing guide investors toward credible ESG investments create a common language for sustainability across markets support policy and r

Geoengineering refers to large‑scale, intentional technological interventions designed to modify the Earth’s climate system in order to reduce global warming or offset the impacts of climate change. Two main types, SRM & CDR: Type 1: Solar Radiation Management (SRM) Goal: Reflect a small portion of sunlight away from Earth back into space so the planet cools. Examples: • Stratospheric aerosol injection – spraying tiny reflective particles into the upper atmosphere. • Mar

GRI = Global Reporting Initiative It is an international, independent standards organization that helps companies and governments report their environmental, social, and governance (ESG) impacts in a transparent and comparable way. Short explanation: GRI provides globally recognized sustainability reporting standards that organizations use to disclose topics like carbon emissions, labor practices, human rights, waste, energy use, supply‑chain impact, and community effects.

Acute Climate Hazards Acute climate hazards are sudden, short‑term extreme weather events caused or intensified by climate change. They occur rapidly and can cause immediate damage. Examples: heatwaves, cyclones, flash floods, hurricanes, wildfires, storm surges. Chronic Climate Hazards Chronic climate hazards are long‑term, gradual climate‑related shifts that build up over time and progressively impact ecosystems, infrastructure, and economies. Examples: rising sea levels, l

NDCs = Nationally Determined Contributions . NDCs (Nationally Determined Contributions) are each country’s official climate‑action plan under the Paris Agreement . They outline how a country will: • reduce greenhouse gas emissions • adapt to climate impacts • track and report progress National climate‑action plans showing how countries will cut emissions and adapt to climate change. Every country sets its own targets (“nationally determined”), but must follow global transpa

A climate tipping point is a critical threshold in the Earth’s climate system where a small change can trigger large, abrupt, and often irreversible shifts in environmental conditions. In simple terms: A tipping point is when the climate moves past a point of “ no return, ” causing major changes that are hard or impossible to stop. Examples of climate tipping points: • Melting of Greenland ice sheet Once a certain amount of ice melts, the rest can melt much faster, raising

Green hushing is when companies intentionally hide, downplay, or avoid publicly communicating their sustainability goals, climate targets, or ESG progress, even when they are taking real action. In other words, it’s the opposite of greenwashing. Why does green hushing happen? Common reasons include: • Fear of scrutiny or backlash Companies worry that if they announce climate targets, stakeholders will criticize them for not being ambitious enough or for missing interim mi

The triple bottom line (TBL) means measuring success in three areas instead of just profit: People – social impact, fair labor, community well‑being Planet – environmental impact, sustainability Profit – financial performance Brief History Coined by John Elkington in 1994  as a challenge to traditional profit‑only accounting. Popularized in the late 1990s and early 2000s as companies adopted Corporate Social Responsibility (CSR). By the 2010s, investor pressure and regul

SAF production = the process of making Sustainable Aviation Fuel , a low‑carbon alternative to conventional jet fuel. SAF is produced from renewable or waste‑based sources such as: used cooking oil agricultural waste municipal solid waste forestry residues CO₂ captured from the air combined with green hydrogen (e‑SAF) The goal of SAF production is to reduce aviation emissions  while remaining compatible with existing aircraft and fuel infrastructure. *Remember the carbon foot

COP30 conference was held from  November 10 to 21, 2025 , in Belém, Brazil. W rapped up in Belém with a mixed but meaningful set of outcomes. The new Belém Package set long‑term direction for adaptation and just transition , while voluntary progress on sustainable fuels and carbon‑market coordination continued despite the absence of a fossil‑fuel phase‑out deal. Key Outcomes at a Glance Tripling adaptation finance by 2035 to close the resilience funding gap. A global Ju