About 65% of enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) have adopted green and sustainable development practices in business operations, and about 70% said they would consider using more of Hong Kong’s green products and services over the next two years, a research report by the Hong Kong Trade Development Council (HKTDC) and UOB revealed.
The HKTDC and UOB have jointly released a research report titled Sustainability in the GBA: Unlocking Opportunities and Empowering Growth. Photo shows Irina Fan, Director of HKTDC Research, and Brian Lam, Chief Financial Officer and Chief Sustainability Officer, of UOB Hong Kong.
The report, Sustainability in the GBA: Unlocking Opportunities and Empowering Growth, revealed that the top three green practices adopted by GBA enterprises include resource recycling, clean energy adoption, and green office practices (notably the use of energy-efficient office equipment, paperless offices, and online office systems). Among these enterprises that have adopted green practices, 98% reported a positive impact on their businesses, in particular, increased brand reputation and brand recognition as well as improved energy efficiency and cost reduction. Other positive impacts include improved governance of corporate compliance and risk control, as well as better chances of securing market and business opportunities.
The report also highlighted that GBA enterprises acknowledge Hong Kong’s significant advantages in green building technologies, green consulting services, green financial services, and expertise in green sectors and advanced technology. The firms expressed a strong willingness to explore and adopt sustainable development services offered by Hong Kong.
Huge opportunities for growing green and sustainable practices in the GBA
HKTDC Research Director Irina Fan said: “As sustainable development has become increasingly important, GBA-based businesses have become ever more committed to implementing ESG-related strategies. Nearly all GBA businesses are looking to incorporate ESG into various business aspects, which translates into an average spend of HK$370,000 (US$47,000) per company in the next two years. Now, there are about 3 million enterprises in the GBA, this could mean a scenario of HK$1 trillion ESG investment. Much of which will likely be channeled into Hong Kong-based green partner businesses.
“With high regard for the sustainable solutions offered in Hong Kong (average desirability score of 8.9 out of 10), GBA enterprises are keen to look to Hong Kong-based green partner businesses to accelerate their sustainable practices.” She added: “About 70% of surveyed respondents considered using or increasing usage of Hong Kong’s green and sustainable solutions. This is a real vote of confidence in the strength and breadth of Hong Kong’s green resources.”
Brian Lam, Chief Financial Officer and Chief Sustainability Officer, at UOB Hong Kong, said: “We recognise the imperative need for GBA enterprises to incorporate sustainability practices into their business strategies. The report highlights the current insufficiency of resources, funds, and unified standards towards sustainable development, which poses a challenge to the successful implementation of green transformation plans and achieving decarbonization targets.
“UOB takes our responsibility to provide and channel capital to facilitate continued investments in sectors that are critical to the energy transition very seriously. With the growing demand for sustainable finance, our aim is to simplify access to sustainable financing for clients, strengthen their ESG capabilities, and support them in the crucial task of transitioning their business models to reduce carbon emissions and seize new business opportunities. Together, we create a greater positive impact and drive sustainable progress.”
Growing emphasis on GBA green sustainable development
The report revealed that almost all (99.7%) of surveyed GBA enterprises planned to incorporate or increase the level of ESG elements in their operations over the next two years, demonstrating commitment to ESG practices. Moreover, more than 90% of GBA enterprises intended to increase or maintain ESG-based investments over the next two years, with 30% planning an increase and 64% maintaining current investment levels. GBA enterprises are expected to allocate an average budget of HK$370,000 (US$47,000) to ESG initiatives over the next two years.
Insufficient experience and funding pose obstacles
However, GBA enterprises generally believed that a lack of experience (77%), cost pressures (67%), and an absence of unified standards (61%) were the key obstacles hindering the implementation of green sustainable development. Surveyed enterprises said the market lacked standardized guidelines and success stories. Many enterprises were concerned about significant upfront investments or difficulty in achieving short-term returns. Existing green standards were also relatively fragmented, with different standards in domestic and international markets, as well as significant industry differences, which discouraged enterprises interested in green transformation.
GBA enterprises look to Hong Kong’s green services
A majority of respondents saw Hong Kong as likely to provide a higher level of green-related services than many comparable mainland cities. Among the areas where Hong Kong was seen as a particularly strong performer were green construction technology, climate risk assessment to a global standard, design consultancy services, green financial services, and the provision of green technology. Most respondents felt that Hong Kong was home to a substantial pool of environmentally aware professionals.
In specific terms, about 70% of surveyed respondents considered using or increasing usage of Hong Kong’s green and sustainable solutions in the next two years. More than 90% believed the city could help effectively accelerate green sustainable development within the region through the deployment of green technology (especially about construction, energy efficiency, and recycling) as well as via the greater availability of a variety of green financial products and services. A substantial number of respondents also indicated they were likely to use a range of Hong Kong’s other green-related services, including green certification and carbon emission measurement (89%), green financial services (88%), and energy transition programs (86%).
GBA enterprises are very keen to learn more about the sustainable development services offered in Hong Kong, with an average desirability score of 8.9 out of 10. The top five preferred green products and services include utilizing green applications provided by Hong Kong; engaging sustainable development roadmap planning and consultancy services; accessing green-focused professional talents/services and advanced technology; benefiting from ESG reporting, due diligence, ESG ratings and green asset valuation services offered by Hong Kong; and utilizing green financial products and services.
The HKTDC-UOB survey was conducted in July and August this year through an online questionnaire completed by 300 leading enterprises in the 11 GBA cities. In addition, a series of in-depth interviews saw a broad cross-section of GBA industry professionals outline their views on Hong Kong’s green development capabilities and their own ESG implementation strategies.
