Recognizing well-run, sustainable organizations for 25 years HKICPA Best Corporate Governance & ESG Awards 2024 now open for applications

(Hong Kong, 11 July 2024) In today’s rapidly changing business landscape, strong corporate governance (CG) and a commitment to sustainability and social responsibility are no longer simply desirable options for listed companies and other organizations, they are essential for long-term success and value creation. The Hong Kong Institute of Certified Public Accountants (HKICPA) Best Corporate Governance and ESG Awards (the Awards), which are now in their 25th year, continue to set the benchmarks of CG and environmental, social and governance (ESG) performance among listed companies and public sector organizations (PSOs) in Hong Kong, and to encourage all companies and PSOs to aim to achieve high standards of transparency and accountability. The Awards are now open for entries until 9 August 2024.

To recognize organizations that excel in CG and ESG

The Awards’ top level of accolades, the Most Sustainable Companies/Organizations Awards, recognize those listed companies and PSOs that demonstrate excellence in both CG and ESG reporting, and which are exhibiting more integrated thinking, by including CG and ESG considerations into their core decision-making. The second tier of awards, “CG Awards” and “ESG Awards”, focuses on each of these two areas individually, recognizing companies and PSOs that demonstrate creditable performances in either CG or ESG. In addition, a Self-Nomination Awards category is open for applications, aimed at smaller listed companies and also PSOs that have taken significant steps towards strengthening 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 before the deadline. The Institute’s highly-regarded Awards remain free to enter, while candidates will have the opportunity to be recognized and receive plaudits from their peers and the wider market for their achievements and leadership in CG and ESG. The performances of the candidates, as reflected in their annual ESG/ sustainability reports and, potentially, other publicly-available information, will be assessed by expert panels of reviewers and judges, comprising representatives from the HKSAR Government, the financial regulators, public sector authorities, academia, investors, professional associations and firms, as well as prominent experts in the field of CG and ESG.

A detailed judges’ report, containing brief commentaries on the winners’ performance, as well as observations on the prevailing CG and ESG standards in Hong Kong, will be published on the HKICPA website later this year. The inspiring efforts of the awardees will also be celebrated at a presentation ceremony scheduled to be held in November 2024.

Awards’ judges focus on the dynamics between climate change and business

The assessment criteria remain stringent. Against the background of the Government’s Vision Statement on Developing the Sustainability Disclosure Ecosystem in Hong Kong, published in March 2024, and with extreme weather events and rising temperatures continuing unabated around the world, this year, amongst other things, we will consider the extent to which companies are taking on board their impact on climate change and how, in turn, climate change may impact on the company. How companies implement effective sustainability governance and disclose meaningful key performance indicators will also be important.

As Hong Kong looks to adopt new corporate sustainability reporting standards, based on the first set of international sustainability disclosure standards released by the International Sustainability Standards Board (ISSB) in 2023, companies with good CG embedded in their culture will have a clear advantage.

For this reason, while ESG is a principal focus of the Awards, the fundamental role played by good CG will continue to be another focus area. Among the specifics of CG that the Awards’ judges will consider this year is whether companies have sound data privacy policies and practices, and cybersecurity measures in place to prevent data leakages and protect vital systems; and whether they have conducted any data security audit. In the effort to improve their ESG, companies must not lose sight of their overall governance. The Awards judges have made it clear that, ultimately, there cannot be effective ESG without a high standard of CG, nor can there be effective CG without good ESG. To echo this point, at the same time as bringing in changes to the ESG Reporting Guide, commencing in January 2025, the HKEX has recently launched another consultation paper on Review of Corporate Governance Code and Related Listing Rules. These proposals are aimed at strengthening board effectiveness and independence, promoting diversity, enhancing risk management and internal controls, and improving capital management.

Even though high-quality CG and ESG are commonly seen as necessary conditions of long-term success, they are not sufficient conditions. A positive financial performance will always be at the heart of a successful business and a sustainable PSO. From an investor’s or taxpayer’s perspective, therefore, transparency around financial reporting is a key consideration. While the Awards do not focus on financial reporting specifically, this year we will also consider whether there is sufficient transparency around financial reporting, particularly where there may be significant losses or gains that call for clear explanation.      

First organized in 2000 as CG awards, the HKICPA Best Corporate Governance & ESG Awards remain as one of Hong Kong’s most prestigious and influential awards. This year, companies and PSOs will again be judged in seven main categories, covering Hang 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 implemented a high standard of disclosures and practices beyond any minimum statutory and regulatory requirements. This year, the size categories for listed companies will be based on the Hang Seng LargeCap, MidCap and SmallCap Indexes.

We are pleased to have received an enthusiastic responses from our sponsors once again this year. They are prominent CPA and other professional consultancy firms (see Note 1). The support of these sponsors, together with that of the Awards’ media sponsors (see Note 2), reflect their endorsement of the objectives of the Awards, as well as the reputation and standing of the Awards in the Hong Kong market.

For more details of the Awards, please visit: https://www.hkicpa.org.hk/BCGESGA2024

^{The Hong Kong Institute of Certified Public Accountants Best Corporate Governance and ESG Awards 2024 are now open for entries until 9 August 2024.}

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.    Forvis Mazars Risk Advisory Services Ltd.

8.    Grant Thornton Hong Kong Ltd.

9.    HLB Hodgson Impey Cheng Ltd.

10.  KPMG

11.  Moore CPA Ltd.

12.  PwC

13.  Riskory Consultancy Limited

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

1.    ET Net

2.    Hong Kong Economic Times

3.    The Standard