Integrating good corporate governance (CG) and ESG into values, strategy and operations is considered to provide a solid foundation for sustainable listed companies and public sector organizations (PSOs), which will help boost stakeholder and investor confidence. This is a focus of the Hong Kong Institute of Certified Public Accountants (HKICPA) Best Corporate Governance and ESG Awards 2023 (the Awards), which are now open for entries until 3 August, 2023.

This year marks the twenty-fourth year of the Awards, which feature two tiers of awards. The top level, the Most Sustainable Companies/Organizations Awards, recognizes those listed companies and PSOs that demonstrate excellence in both CG and ESG reporting. The second tier of awards focuses more specifically on each of these two areas, recognizing companies and PSOs that demonstrate best practice in either CG or ESG. Besides these, a Self-Nomination Awards category is also available for smaller listed companies and PSOs that have taken significant steps to strengthen their CG and/ or ESG practices, especially by adopting new voluntary practices.

Listed companies and PSOs are encouraged to submit entry forms to the HKICPA by the deadline. There continues to be no entry fee to take part in the Awards, while candidates will have the opportunity for their achievements to be recognized by their peers and the wider market. The CG and ESG performances of the candidates will be assessed by expert panels of reviewers and judges comprising representatives from the HKSAR Government, the financial market regulators, public sector authorities, academia, investors, professional associations and firms, as well as prominent experts in the field of CG and ESG.

The successful efforts of the awardees in the different categories will be celebrated at an awards presentation ceremony scheduled to be held in late November 2023, where the Secretary for Financial Services and the Treasury, Mr. Christopher Hui, has accepted the invitation to be the guest of honour. A judges’ report, containing  brief commentaries on the winners’ performance, as well as observations on the general CG and ESG standards in Hong Kong, will be published on the HKICPA website.

The evaluation criteria for the CG performance of the Awards’ candidates also remain stringent. This year, amongst other things, we will consider whether “overboarding” is an issue on company boards of directors in Hong Kong. In principle, directors should serve on only a limited number of other company boards to enable them to devote adequate time commitment to board agendas and to discharge their duties fully to companies and boards on which they sit. Another focus area this year will be the level of the remuneration package of the chief executive officer compared with that of the second-highest-paid executive in the company. If the reward gap is excessive, this may reflect or create the perception of a concentration of power and influence in the hands of the CEO, which could make it harder for others to challenge the CEO’s judgment and decisions.

In anticipation of the latest international and local developments, in particular the recent promulgation of global, baseline standards for sustainability, including climate-related, reporting, by the International Sustainability Standards Board, we have reviewed and made changes to our ESG assessment criteria.

With the World Meteorological Organization predicting that global average temperatures will surpass 1.5°C above pre-industrial levels, for the first time in human history, within the next five years, the Institute will also focus on sustainable development, and whether candidates have disclosed challenging, yet attainable, ESG-related quantitative targets, together with their actual performance over the years. We hope to see more candidates disclosing and discussing their measures and actual progress in combating climate change, as well as towards achieving other ESG goals. The question of whether candidates are seeking independent ESG assurance will also be taken into account, as assurance can help validate the objectivity, reliability and integrity of a company’s ESG data and claimed performance, as so help to discourage and prevent “greenwashing”.

Research to evaluate listed companies’ ESG assurance

Following on from our brief research and review of the state of play in ESG assurance in Hong Kong, which was published in December 2021 and covered all the December 2020 year-end listed companies, HKICPA is embarking upon an update study this year, to gauge whether and how the landscape is changing with regard to ESG assurance in the local market. The research will look at the sustainability / ESG reports (or, where applicable, the ESG sections in annual reports) of all December 2022-year-end listed companies, amounting to around 1,800 in all. Among the specific research areas to be examined, the study will look at questions such as: Have the companies sought assurance and have they engaged an independent ESG assurer? Have they set quantitative targets to achieve carbon neutrality? Whether there is a board-level ESG/sustainability committee and how frequently it has met, and also whether its members include anyone with relevant accounting qualifications, to help in assessing, e.g., the financial aspects of ESG risks and opportunities. The key findings of the research will be published later this year.

The Best Corporate Governance Awards were first organized in 2000. The Awards were revamped and renamed as the Best Corporate Governance and ESG Awards in 2021, enhancing their standing as one of Hong Kong’s most prestigious and sought-after awards. This year, companies and PSOs will again be judged in seven main categories, covering Hand Seng Index-constituents and other listed companies and PSOs of different sizes, based on their market capitalization or turnover, respectively. The judging criteria look at whether companies and PSOs have taken the initiative to implement a high standard of disclosures and practices that go beyond the minimum statutory and regulatory requirements.

In 2022, the HKICPA invited a limited amount of financial sponsorship to help support the costs of organizing the Awards, and was pleased to receive considerable interest from prominent CPA and other professional consultancy firms, which we see as an endorsement of the objectives, as well as the reputation and standing of the Awards in the Hong Kong market. This year, once again, we are pleased to have received a similar enthusiastic response (see Note 1). HKICPA expresses its deep appreciation for this support and that of the Awards’ media sponsors (see Note 2). For more details of the Awards, please visit: https://www.hkicpa.org.hk/BCGESGA

Note 1: list of sponsors (in alphabetical order)

1.    Ace Sustainability & Risk Advisors Ltd.

2.    AVISTA Group

3.    BDO

4.    CityLinkers Group

5.    Deloitte Touche Tohmatsu

6.    Ernst & Young

7.    Grant Thornton Hong Kong Ltd.

8.    HLB Hodgson Impey Cheng Ltd.

9.    KPMG

10.  Mazars

11.  Moore CPA Ltd.

12.  PwC

13.  Riskory Consultancy Limited

14.  RSM Hong Kong

Note 2: list of media sponsors (in alphabetical order)

1.    ET Net

2.    Hong Kong Economic Times

3.    The Standard

^{The Hong Kong Institute of Certified Public Accountants has opened the Best Corporate Governance and ESG Awards 2023 for entry until August 3, 2023.}

香港會計師公會「最佳企業管治及ESG大獎2023」現正接受報名

將良好企業管治與環境、社會及管治（ESG）融入上市企業及公營機構的價值觀、策略及營運上，能為她們的可持續發展奠下堅實基礎，有助提升持份者及投資者的信心，這正正是香港會計師公會（公會）的「最佳企業管治及ESG大獎2023」（大獎）本年度焦點。大獎現正接受報名，2023年8月3日截止。

公會舉辦「最佳企業管治及ESG大獎」已踏入第24個年頭，本年度的獎項將分為兩個等級，當中最高榮譽「最佳可持續發展公司／機構獎」將嘉許於企業管治及ESG匯報方面均表現卓越的上市公司及公營機構；第二級別的獎項則嘉許於企業管治或ESG匯報其中一個範疇上展示最佳實踐的企業及公營機構。另外，大獎特設「自薦獎項類別」，嘉許規模較小的上市公司及公營機構，在加強其企業管治或ESG實務上，尤其是透過採取自願性措施而取得顯著進展。

有意參加的上市公司及公營機構，請於大獎截止報名前向公會提交參加表格，費用全免。候選機構將有機會向行業同儕及市場展現機構的發展成果。大獎的專家評審團由來自香港政府、金融市場監管機構、公營界別、學界、投資者、專業組織及公司，以及企業管治與ESG範疇的專家組成，將檢視候選機構於企業管治及ESG方面的表現。

最佳企業管治及ESG大獎2023的頒獎典禮將於今年11月底舉行，嘉許不同獎項的得獎機構，表揚她們的傑出表現及努力。財經事務及庫務局局長許正宇先生將擔任頒獎典禮的主禮嘉賓。評審報告將上載至公會網頁，臚列對得獎機構的基本評語及表現，以及有關香港整體企業管治與ESG水平的概況。

今年我們評審候選機構企業管治表現的準則將維持嚴謹，除了以往的評審範疇，我們會考慮香港企業的董事局是否有「過度入閣」問題。原則上，每位董事應只服務有限量的董事局，以確保有足夠時間投入各董事局的工作，及妥善履行對所服務董事局及企業的職責。另外，今年度評審會著力檢視及比較企業行政總裁與第二高薪行政人員的薪酬，如兩者的薪酬待遇差距過大，或反映行政總裁權力及影響力過大，這情況有機會使其他人難以挑戰行政總裁的判斷及決策。

國際及本地準則時有更新，近期國際可持續發展準則理事會（ISSB）便頒布了全球首套包括氣候變化的基本可持續發展準則，公會因而就大獎ESG範疇的評審準則作出檢視及修訂。

世界氣象組織預計，未來五年的全球平均溫度將較工業化前上升攝氏1.5度，屬人類史上首次。有見及此，公會將焦點放在可持續發展，檢視候選機構有否披露她們訂下具挑戰性惟可達到的ESG相關量化目標，以及多年來的實際表現。公會期望有更多機構能披露並探討她們在對抗氣候變化及達成其他ESG目標的措施及實際進展，評審亦會考慮候選機構是否有尋求獨立的ESG鑒證，因為這可確保企業的ESG數據及報稱的相關表現有足夠客觀性、可靠性及信用度，避免出現「漂綠」行為。

評估上市公司ESG鑒證研究

繼2021年12月發表簡要研究，審視所有以2020年12月底年結上市公司的ESG鑒證實施狀況，公會今年度再次就相同題目進行研究，衡量本地市場的ESG鑒證生態有否改變。研究將審視約1,800間以2022年12月底為年結的香港上市公司的可持續發展／ESG報告（或年報內有關ESG的章節）。在這特定的研究範疇內，我們將觀察：企業有否尋求鑒證或委聘獨立的ESG鑒證人員、有否就達成碳中和設立量化目標、有否設立董事層次的ESG／可持續發展委員會及其開會頻率，及有否擁有相應的會計師資格的成員，以協助企業評估例如ESG在財務層面的風險及機遇。研究的主要結果將於今年的稍後時間公佈。

「最佳企業管治大獎」於2000年首次舉辦。2021年大會修訂及重新命名獎項為「最佳企業管治及ESG大獎」，使獎項繼續成爲香港最受推崇及歡迎的獎項之一。今年度參與大獎的機構將競逐以其市值或收入所分類的七個類別獎項，涵蓋不同規模的恆指成份股公司、其他上市公司及公營機構。評審將審視公司及公營機構有否實施優於最低法定及監管要求的高水平披露及實務。

公會於2022年為大獎引入少量財務贊助舉辦大獎，喜見大獎獲眾多著名會計師事務所及其他專業諮詢機構支持，證明大獎舉辦的目標獲得業界認可，亦足見大獎於香港市場的聲譽與地位。今年，我們再次收到了熱烈反應（詳見註一）。公會衷心感謝他們及傳媒合作夥伴（見註二）的支持。有關大獎的詳情，請瀏覽 https://www.hkicpa.org.hk/BCGESGA。

註一：贊助名單（按英文字母排列）

1.    傑思可持續發展與風險諮詢有限公司

2.    艾華迪集團

3.    香港立信德豪會計師事務所

4.    連城集團

5.    德勤 · 關黃陳方會計師行

6.    安永會計師事務所

7.    致同（香港）會計師事務所有限公司

8.    HLB國衛會計師事務所有限公司

9.    畢馬威會計師事務所

10.  中審眾環（香港）會計師事務所有限公司

11.  大華馬施雲會計師事務所有限公司

12.  羅兵咸永道

13.  Riskory Consultancy Limited

14.  羅申美會計師事務所

註二：媒體合作夥伴（按英文字母排列）

1. 經濟通

2. 香港經濟日報

3. 英文虎報

^{香港會計師公會舉辦的「最佳企業管治及ESG大獎2023」現正接受報名，2023年8月3日截止。}