Adoption of International ESG reporting framework

Adoption of international ESG reporting framework

The ESG Reporting Code sets out minimum parameters for reporting with a view to facilitating issuers’ disclosure and communication with investors and other stakeholders, and is not intended to be comprehensive. When preparing ESG reports, issuers may refer to or adopt existing international reporting standards or guidelines that are relevant to the issuers’ industry or sector so long as they include comparable disclosures to those required under the ESG Reporting Code in their ESG reports. Issuers are suggested to clearly indicate where the comparable disclosures required under the ESG Reporting Code are located – this can be by way of a reference table directing readers to the relevant section of the ESG report.

Multiple international ESG reporting frameworks may be applied to different topics. To ensure consistent and comparable ESG disclosures, it will be helpful if issuers specify the applicable standards to the relevant topic in their ESG reports.

Adoption of international ESG reporting framework:

Commentary

CLP Holdings Limited (00002), Sustainability Report 2023

Summary of reporting frameworks referenced

(p.10)

This report references several reporting guidelines and frameworks to ensure comparability, an approach aligned with international best practice.
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The International Sustainability Standards Board (ISSB)’s International Financial Reporting Standards (IFRS) S1 General Requirements for Disclosure of Sustainability-related Financial Information

In response to these new IFRS standards, CLP in its 2023 Annual Report has disclosed information about sustainability-related risks and opportunities that could reasonably be expected to affect the Company’s prospects.
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The ISSB's IFRS S2 Climate-related Disclosures

In 2023, CLP has continued to enhance its climate-related disclosures by making reference to the IFRS S2 standards when describing its responses to relevant climate-related risks and opportunities, and providing annual updates and quantitative metrics in its Annual Report.
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(p.11)

The Global Reporting Initiative (GRI)

This report has been prepared in accordance with GRI Universal Standards 2021. It also reports on matters relevant to the GRI G4 Electric Utilities Sector Disclosures, covering aspects of its sustainability performance that are meaningful and relevant to the electric utility sector.
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Task Force on Nature-related Financial Disclosures (TNFD)

CLP makes reference to the TNFD’s recommendations in disclosing its assessment of nature-based risk and of its impact on nature in the chapter Respecting Nature.
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Greenhouse gas (GHG) emissions data

CLP's GHG emissions are reported with reference to the World Resources Institute (WRI)/WBCSD GHG Protocol, the Intergovernmental Panel on Climate Change’s Guidelines for National Greenhouse Gas Inventories (2006), the International Standard for GHG Emissions ISO 14064 and relevant local statutory guidelines where applicable.
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References to international ESG reporting frameworks in various reporting sections

(p.33)

The materiality matrix

The materiality assessment results are summarised in the materiality matrix below, showing the relationships between megatrends, material topics and relevant sub-topics. The IFRS S1 disclosure requirements, including time horizon and position of the value chain, were incorporated in the results for the first time.
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(p.49)

Reducing environmental impacts

This year, CLP conducted a biodiversity sensitive area analysis among its operational control assets with reference to the Taskforce on Nature-related Financial Disclosures (TNFD) Recommendations, as a starting point for forming a holistic nature-related strategy.
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(p.170)

ESG data table

Commentary

In its sustainability report, the issuer provided an overview of multiple international ESG reporting frameworks that it had referenced. The summary included a brief introduction of the standards and guidelines, their relevance to the issuer’s business operations and how the issuer applied the same towards its sustainability reporting.

In addition, throughout the sustainability report, the issuer included statements or rule references wherever international standards or guidelines were applied in preparing disclosures. Such references bring clarity as to how international reporting practices were adopted.

Adoption of international ESG reporting framework:

Commentary

Hang Seng Bank Limited (00011), Environmental, Social and Governance Report 2023

Summary of reporting frameworks referenced

(p.73)

This report has also been prepared with reference to the Global Reporting Initiative (‘GRI’) Standards, and with reference to the standards for Commercial Banks set by the Sustainability Accounting Standards Boards (‘SASB’). We continue to publish climate-related disclosures in this report with reference to the recommendations provided by the Task Force on Climate-related Financial Disclosures (‘TCFD’), in order to increase the transparency of our work in mitigating and adapting to climate change.
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We have also considered our ‘comply or explain’ approach under the HKMA’s Supervisory Policy Manual GS-1 on Climate Risk Management, and we confirm that we have disclosed the information consistently, in adherence to the TCFD’s recommended disclosures in this report.
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Content indexes to international ESG reporting frameworks

(p.85)

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(p.99)

Hang Seng Bank_99_1000

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(p.101)

Commentary

The issuer summarised both the general and sector-related ESG reporting standards or guidelines that it had adopted. Index tables were used to clearly present how the issuer satisfied the disclosure requirements of each standard or guideline, thereby directing readers to relevant parts of the ESG report.

In particular, the issuer mapped its disclosures with reference to both the GRI Standards and the ESG Reporting Code in the same index table, so that readers could easily locate comparable disclosures in the ESG report.

Moreover, the TCFD index table included brief responses to the TCFD Recommendations, facilitating readers’ assessment of the issuer’s adoption of the TCFD framework. Overall, the issuer’s approach has enhanced the transparency and credibility of its ESG report.

ESG in Practice

Adoption of international ESG reporting framework:

Commentary

Adoption of international ESG reporting framework:

Commentary