Enhance your ESG Knowledge

The Greenhouse Gas (GHG) Protocol is the world’s most widely used standard for measuring and reporting greenhouse gas emissions. It defines how organisations should classify, calculate, and disclose their emissions across: Scope 1 – direct emissions from owned/controlled sources Scope 2 – indirect emissions from purchased electricity/heat/steam Scope 3 – all other value‑chain emissions (e.g., suppliers, logistics, waste, travel) In the 1990s, companies and governments

Governance matters in ESG because it’s the “operating system” that makes the E and the S real . Good governance ensures that sustainability is not a slogan but a set of decisions, controls, incentives, and accountability mechanisms that actually influence behaviour. Governance turns intent into action. Environmental and social commitments mean nothing without decision‑rights, data controls, and consequences. Governance allocates accountability. Someone must own the risk,

What is Permanence? In sustainability (especially in carbon accounting and waste management), permanence  refers to how long a material, carbon storage method, or environmental impact remains stable without being reversed . In simple terms: It measures how long something lasts without breaking down, leaking, or being re‑released into the environment . Permanence matters because long‑lasting materials (or carbon storage methods) carry different risks : • Long permanence = go

A stranded asset is a concept widely used in ESG and sustainability discussions. What is a stranded asset? A stranded asset is an asset that loses its value abruptly or becomes obsolete due to external changes linked to ESG or sustainability factors (regulatory changes, political changes etc...). The asset still exists, but it can no longer generate expected financial returns. Why do assets become stranded in an ESG / sustainability context? Common reasons include: • Cl

RCP and SCP are two concepts that often appear in sustainability and ESG contexts, though they refer to different but complementary frameworks . Let’s break them down clearly and professionally RCP — Representative Concentration Pathways Definition: RCP (Representative Concentration Pathway) is a set of scientific climate scenarios developed by the Intergovernmental Panel on Climate Change (IPCC) . They describe possible greenhouse gas (GHG) concentration trajectories a

What is NGFS in terms of ESG/ sustainability? NGFS stands for the Network for Greening the Financial System . It’s an international coalition of central banks and financial supervisors working together to manage climate-related financial risks and mobilize finance to support the transition toward a sustainable economy . Overview Full name: Network for Greening the Financial System (NGFS) Established: 12, December 2017 Founded by: Eight central banks and supervisors, inc

What Is TPA — Total Portfolio Approach The Total Portfolio Approach (TPA) is an integrated investment management framework where an investor (such as an asset owner, sovereign wealth fund, pension fund, or endowment) manages the entire portfolio holistically, rather than in isolated asset‑class silos . Instead of focusing on traditional asset classes (equities, bonds, real estate, etc.) separately, a TPA framework considers the total portfolio’s overall risk, return, and lo

Emission Factor Database (EFDB) is an essential tool in carbon accounting and auditing. Let’s me give you some ideas: What Is the Emission Factor Database (EFDB)? The EFDB is a global reference database of emission factors — values used to estimate the amount of greenhouse gas (GHG) emissions released from specific activities or energy use. It is maintained by the Intergovernmental Panel on Climate Change (IPCC) to support consistent and transparent GHG inventories ar

1. What Is Biomass Energy 🌿 ? Biomass energy refers to energy derived from organic materials — such as wood, agricultural residues, forest waste, animal manure, or dedicated energy crops. It is considered part of the renewable energy mix because the carbon released during combustion can, in theory, be reabsorbed by new plant growth , creating a closed carbon cycle . Examples of biomass energy sources: Wood pellets and forestry residues Agricultural waste (corn stalks, r

Phase II of Hong Kong’s Sustainable Finance Taxonomy (also referred to as the Phase 2A stage ) is the second development stage of the classification system led by the Hong Kong Monetary Authority (HKMA) with technical support from the Climate Bonds Initiative (CBI) . It builds on the first phase released in May 2024 and was officially announced on 8 September 2025 , accompanied by a public consultation. Here’s a concise professional overview: Purpose Phase  II aims to exp

Greenhouse gases (GHGs) are gases in the Earth’s atmosphere that trap heat and help keep the planet warm enough to support life. Definition: Greenhouse gases are atmospheric gases that absorb and emit infrared radiation, causing the greenhouse effect — a natural process that warms the Earth’s surface. How It Works: The Sun’s energy reaches Earth as sunlight (shortwave radiation). The Earth absorbs some of this energy and re-emits it as heat (longwave infrared radiation)

What is PRI? The UN-supported Principles for Responsible Investment (PRI) is a global initiative launched in 2006 by the United Nations Environment Programme Finance Initiative (UNEP FI) and the UN Global Compact . It encourages investors to incorporate ESG factors into their investment decisions to promote responsible, sustainable finance. 📜 The Six PRI Principles Signatories commit to: Incorporate ESG issues into investment analysis and decision-making. Be active own

Artificial Intelligence ( AI ), the buzzword these days, is becoming a pivotal force in advancing ESG (Environmental, Social, and Governance) and sustainability objectives. By improving 1. data accuracy, 2. operational efficiency, and 3. strategic insight, AI enables companies to deliver measurable environmental and social impact while strengthening corporate governance. (also may able to achieve the cost saving effects too) 🌿 Environmental (E): Optimizing Resources and Cl

Carbon intensity is a measure of how much carbon dioxide (CO₂) (or CO₂-equivalent greenhouse gases) is emitted per unit of output . It shows how efficiently a company, product, or economy generates value while managing its emissions. In business terms, it’s the ratio between GHG emissions and a relevant activity or economic unit , such as revenue, energy produced, or product manufactured. Formal Definition Carbon Intensity = Total GHG Emissions (in CO₂e) ÷ Unit of Outpu

1. Background and Historical Context 🌡️ The problem: By the late 20th century, scientists had reached strong consensus that greenhouse gas (GHG) emissions from industrial activity were intensifying the greenhouse effect , causing global warming . 📅 Key milestones: Year Event 1992 United Nations Framework Convention on Climate Change ( UNFCCC ) signed at the Rio Earth Summit — establishing the global framework for addressing climate change. 1997 Kyoto Protocol adopted in K

The albedo effect refers to how much sunlight (solar radiation) a surface reflects back into space instead of absorbing. It plays a crucial role in Earth’s climate system . Key Idea Albedo is a measure of reflectivity , expressed as a fraction or percentage. High albedo: More reflection, less absorption (e.g., snow, ice). Low albedo: Less reflection, more absorption (e.g., oceans, forests, asphalt). Example: Typical Albedo Values Surface Type Approx. Albedo Fresh snow 0.

A Just Transition refers to ensuring that the shift toward a low‑carbon and sustainable economy is fair, inclusive, and equitable — so that workers, communities, and industries affected by climate action are not left behind . ⚖️ A Just Transition ensures that environmental progress goes hand‑in‑hand with social justice and economic fairness . Key Principles Principle Description Equity & Inclusion Support for people and communities most affected by the green transition

Below is a high level & structured summary of the key reporting principles under the Hong Kong Stock Exchange (HKEX) Environmental, Social and Governance (ESG) Reporting Guide , which forms part of Appendix 27 (Main Board) and Appendix 20 (GEM) of the Listing Rules for listed companies. HKEX ESG Reporting Guide — Overview The ESG Reporting Guide sets out the disclosure framework for all listed issuers on the HKEX. It became mandatory to comply with “comply or explain” p

Definition ISO 14064 is an international standard developed by the International Organization for Standardization (ISO) that provides a framework for quantifying, monitoring, reporting, and verifying greenhouse gas (GHG) emissions and removals . It’s part of the ISO 14000 family of environmental management standards , which support sustainable and responsible environmental practices. Structure of ISO 14064 Standard Title Focus ISO 14064-1:2018 Specification with guidance a

Carbon accounting (also called greenhouse gas accounting ) is the process of measuring, recording, and reporting the amount of carbon dioxide (CO₂) and other greenhouse gas (GHG) emissions an organization, project, or product produces — and sometimes removes or offsets. It’s a key tool in sustainability management and climate change mitigation , helping businesses understand and reduce their environmental impact. Purpose of Carbon Accounting To quantify emissions linked