A joint research by DBS Hong Kong and KPMG highlights 3 critical gaps in climate disclosure and transition readiness of Hong Kong-listed companies in light of new HKEX climate disclosure requirements | 繁體
Hong Kong.18 Feb 2025
Driving change: data, knowledge and financial support as the key enablers of a sustainable future
Hong Kong, 18 Feb 2025 - DBS Bank (Hong Kong) Limited (“DBS Hong Kong”) announced today a research report in collaboration with KPMG, unveiling the 3 main critical gaps in climate disclosure and transition readiness of Hong Kong listed consumer goods businesses in response to the recent climate disclosure requirements by Hong Kong Exchanges and Clearing Limited (HKEX), including the data gap, the knowledge gap, and the financial gap.
The report, titled “Driving change: the climate disclosure of Hong Kong listed companies in key sectors and the road ahead”, reviewed the climate-related disclosure status of selected Hong Kong listed companies. Effective decarbonisation requires three key elements: accurate data, comprehensive knowledge, and adequate financial support. Our findings and analysis indicate that all three elements have gaps to bridge: a data gap concerning Scope 3 emissions profile, a knowledge gap in establishing effective targets and transition plans, and a financial gap needed to execute those plans.
The report also highlights the interdependence of disclosure and transition: regulatory mandates enhance data coverage, leading to improved quality and robust targets that propel decarbonisation efforts.
Raymond Ng, Head of Clients and Markets, Hong Kong at KPMG China, noted the industry’s recognition of sustainability’s importance but highlighted a lack of resources and industry expertise in effectively managing emissions data, as well as setting realistic targets and transition plans.
Today’s corporate ESG disclosure frameworks provide consistent and relevant reporting, enabling quantification and benchmarking of environmental and social impacts. Even though the current challenges are more towards Scope 3 data gaps, we can expect these gaps to gradually narrow with large-cap companies being mandated to disclose their Scope 3 emissions. Enhanced climate disclosure and alignment of business strategies with science-based carbon reduction targets are anticipated to foster more consistent and comparable reporting, ultimately driving the transition to a low-carbon economy.
The research report examines the existing challenges companies face in attaining precise disclosure and progress in decarbonisation of Hong Kong listed companies, focusing on leading Chinese mainland enterprises and Hong Kong businesses across six sectors, including Apparel, Food & Beverage, Home Products, Hospitality, Logistics and Transportation & Automobile. These industries operate with complex, multifaceted supply chains, presenting distinct challenges and opportunities as they undergo the low-carbon transformation.
Effective January 2025, the ESG Code issued by HKEX, mandated that listed companies in Hong Kong provide more detailed disclosures regarding their ESG-related strategies, governance, risk management, metrics, and targets for climate-related matters. These new requirements highlight the growing demand for transparent and comprehensive climate reporting and the need for listed companies in Hong Kong to align with global standards.
For more details: “Driving change: the climate disclosure of Hong Kong listed companies in key sectors and the road ahead”
* Transition Plan Taskforce, “Disclosure Framework”. Published October 2023, from https://transitiontaskforce.net/wp-content/uploads/2023/10/TPT_Disclosure-framework-2023.pdf
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia, and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 16 consecutive years from 2009 to 2024.
DBS provides a full range of services in consumer, SME, and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities.
For more information, please visit www.dbs.com.
About KPMG
KPMG in China has offices located in 31 cities with over 14, 000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the “Big Four” in the Chinese Mainland to convert from a joint venture to a special general partnership.
KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.
KPMG firms operate in 142 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
Celebrating 80 years in Hong Kong
In 2025, KPMG marks “80 Years of Trust” in Hong Kong. Established in 1945, we were the first international accounting firm to set up operations in the city. Over the past eight decades, we’ve woven ourselves into the fabric of Hong Kong, working closely with the government, regulators, and the business community to help establish Hong Kong as one of the world’s leading business and financial centres. This close collaboration has enabled us to build lasting trust with our clients and the local community – a core value celebrated in our anniversary theme: “80 Years of Trust”.
Boris Chan, Managing Director and Head of Institutional Banking Group at DBS Hong Kong (left) and Raymond Ng, Head of Clients and Markets, Hong Kong at KPMG China (right) today announced the research report unveiling the 3 main critical gaps in climate disclosure and transition readiness of Hong Kong listed consumer goods businesses.
The report, titled “Driving change: the climate disclosure of Hong Kong listed companies in key sectors and the road ahead”, reviewed the climate-related disclosure status of selected Hong Kong listed companies. Effective decarbonisation requires three key elements: accurate data, comprehensive knowledge, and adequate financial support. Our findings and analysis indicate that all three elements have gaps to bridge: a data gap concerning Scope 3 emissions profile, a knowledge gap in establishing effective targets and transition plans, and a financial gap needed to execute those plans.
The report also highlights the interdependence of disclosure and transition: regulatory mandates enhance data coverage, leading to improved quality and robust targets that propel decarbonisation efforts.
- The missing link: more than half of companies are still silent on Scope 3 emissions. 60% of analysed companies have not begun reporting Scope 3 emissions due to the current stage of data availability and quality challenges, even though around 70% of greenhouse gas (GHG) emissions are under Scope 3 for most of the analysed companies.
- Targets misaligned: majority of companies lack science-based targets. 57% of disclosed targets are not science-based or aligned with international target-setting standards, even with an 85% disclosure rate on commitments to carbon emissions reduction in their Environmental, Social, and Governance (ESG) reports.
- A call to action: companies need comprehensive transition plans: only 10% of the analysed companies are at mature level of transition plan in accordance with the 3As principles – Ambition, Action, and Accountability proposed by the Transition Plan Taskforce (TPT)*.
Raymond Ng, Head of Clients and Markets, Hong Kong at KPMG China, noted the industry’s recognition of sustainability’s importance but highlighted a lack of resources and industry expertise in effectively managing emissions data, as well as setting realistic targets and transition plans.
Today’s corporate ESG disclosure frameworks provide consistent and relevant reporting, enabling quantification and benchmarking of environmental and social impacts. Even though the current challenges are more towards Scope 3 data gaps, we can expect these gaps to gradually narrow with large-cap companies being mandated to disclose their Scope 3 emissions. Enhanced climate disclosure and alignment of business strategies with science-based carbon reduction targets are anticipated to foster more consistent and comparable reporting, ultimately driving the transition to a low-carbon economy.
The research report examines the existing challenges companies face in attaining precise disclosure and progress in decarbonisation of Hong Kong listed companies, focusing on leading Chinese mainland enterprises and Hong Kong businesses across six sectors, including Apparel, Food & Beverage, Home Products, Hospitality, Logistics and Transportation & Automobile. These industries operate with complex, multifaceted supply chains, presenting distinct challenges and opportunities as they undergo the low-carbon transformation.
Effective January 2025, the ESG Code issued by HKEX, mandated that listed companies in Hong Kong provide more detailed disclosures regarding their ESG-related strategies, governance, risk management, metrics, and targets for climate-related matters. These new requirements highlight the growing demand for transparent and comprehensive climate reporting and the need for listed companies in Hong Kong to align with global standards.
For more details: “Driving change: the climate disclosure of Hong Kong listed companies in key sectors and the road ahead”
* Transition Plan Taskforce, “Disclosure Framework”. Published October 2023, from https://transitiontaskforce.net/wp-content/uploads/2023/10/TPT_Disclosure-framework-2023.pdf
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia, and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 16 consecutive years from 2009 to 2024.
DBS provides a full range of services in consumer, SME, and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities.
For more information, please visit www.dbs.com.
About KPMG
KPMG in China has offices located in 31 cities with over 14, 000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the “Big Four” in the Chinese Mainland to convert from a joint venture to a special general partnership.
KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.
KPMG firms operate in 142 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
Celebrating 80 years in Hong Kong
In 2025, KPMG marks “80 Years of Trust” in Hong Kong. Established in 1945, we were the first international accounting firm to set up operations in the city. Over the past eight decades, we’ve woven ourselves into the fabric of Hong Kong, working closely with the government, regulators, and the business community to help establish Hong Kong as one of the world’s leading business and financial centres. This close collaboration has enabled us to build lasting trust with our clients and the local community – a core value celebrated in our anniversary theme: “80 Years of Trust”.
