The Hong Kong Trade Development Council (HKTDC) will add a support stream to its Transformation Sandbox (T-box) program to help Hong Kong companies integrate environmental, social, and governance (ESG) initiatives into business. The new stream is expected to organize 100 free consultation meetings and serve 500 small and medium-sized enterprises (SMEs) in its first year, covering both manufacturing and services sectors, such as garments, electronics, lighting, houseware, and gifts, as well as transport, catering, and construction.
HKTDC Deputy Executive Director Dr. Patrick Lau said promoting sustainable development was an important theme globally; governments and multinational companies had set targets to cut carbon dioxide emissions, providing impetus for the green sector and encouraging Hong Kong businesses to move forward with sustainable development. In addition, ESG compliance had become a criterion for bank-loan approval and orders from premium buyers.
ESG is crucial for success
“ESG is no longer simply an option, but an important success factor. The HKTDC hopes this new service will become the strongest support for local business in their ESG transformation, encouraging more SMEs to take action to achieve sustainable development goals through adopting innovative eco solutions, as well as to bear social responsibilities and enhance corporate governance,” Dr Lau added.
To help SMEs navigate trends and apply ground-breaking technologies for solving long-lasting problems, the HKTDC and a number of organizations – including Business Environment Council (BEC) and Dun & Bradstreet (HK) Ltd – will cooperate to provide practical advice and information on sustainability transformation through consultation and workshops. ESG registration services will be offered at a discount.
The HKTDC will proactively collaborate with industry organizations and professional bodies to organize thematic workshops on social responsibility and corporate governance for SMEs, covering issues ranging from human resources and supply chain to risk management, cybersecurity, and more.
Net-zero roadmaps for businesses
Business Environment Council (BEC) Chief Executive Officer Mr. Simon Ng said severe climate challenges meant all business sectors should immediately act to formulate roadmaps and accelerate the net-zero transition.
“BEC will lead the local business community to build a sustainable ecosystem and continue to work with different stakeholders to achieve the goal of carbon neutrality through thought-leadership, innovative solutions, policy advocacy, strategic partnership, advisory services, and environmental education,” he said.
Discounted ESG Registered(TM) Service
Dun & Bradstreet will offer special discounts for T-box members using the D&B ESG Registered(TM) service, to help them take the first steps towards sustainable transformation and enhance ESG data transparency, which helps firms that form part of global ESG supply chains.
Ms Michelle Mak, Head of ESG and Enterprise Learning, Dun & Bradstreet (HK) Ltd said ESG was about more than net-zero emissions; social responsibility and corporate governance were equally important. “To comply with ESG commitment, many MNCs (Multinational Corporations) have incorporated ESG controls into their supplier and vendor evaluation and selection process. D&B ESG Registered(TM) meets industry-recognized sustainability standards such as SASB, GRI, TCFD, UN SDGs, UN PRI, and CDP, those who successfully complete the required assessment will be given a badge as a recognition of commitment to disclosing ESG data, and SMEs’ efforts in ESG will help lift up corporate images and enhance competitive edges.”
Supporting over 3,000 SMEs
The HKTDC Transformation Sandbox (T-box) is an SME support program launched in April 2020 to help businesses enhance competitiveness and achieve transformation goals in the areas of branding, e-commerce, manufacturing and supply chain solutions, and new markets.
The T-box team supports SMEs over a three-month period with advisory services, workshops, government-funding information, market knowledge, and networking opportunities to help them track market trends, improve skills and expand business connections. The program has served more than 3,000 companies since its launch. With the support of representatives from professional bodies, business associations, chambers of commerce, business partners as well as HKTDC overseas offices, about 850 consultation meetings have been arranged free of charge.
