This undated photo shows a view of the Victoria Harbour in Hong Kong. (PHOTO / CHINA DAILY)

An international ESG (environmental, social, and governance) alliance was launched in Hong Kong on Wednesday, paving the way for a sound disclosure and cooperation system in the emerging sector.

Co-initiated by Hong Kong Ta Kung Wen Wei Media Group, China Certification & Inspection (Group) Co, HKU Institute for China Business, and Peking University HSBC Business School, the alliance aims to promote the sustainable development concept of ESG, enhance companies’ ESG management standards and solidify Chinese enterprises’ ESG leadership on the global stage.

The concept of ESG is gaining increasing popularity in Hong Kong. HKEX, the city’s bourse operator, requires listed companies to disclose ESG reports

Currently, global ESG disclosure standards and evaluation systems are primarily dominated by the US and Europe, noted Li Dahong, chairman of Hong Kong Ta Kung Wen Wei Media Group.

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It is vital for the industry to establish an indigenous ESG evaluation framework that aligns with international standards while showcasing the progress of Chinese enterprises, he said at the launch ceremony.

“ESG embodies a set of enduring values demanding steadfast commitment and continual practice,” Li said. “Our aim is to advocate and cultivate ESG concepts in Hong Kong and the Chinese mainland, aligning them with international benchmarks and fostering the sustainable advance of the national economy."

The concept of ESG is gaining increasing popularity in Hong Kong. HKEX, the city’s bourse operator, requires listed companies to disclose ESG reports. The Hong Kong Securities and Futures Commission has also been working on formulating localized ESG standards that are in line with international standards in recent years.

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Zhang Jian, chairman of CCIC, said the group is positioned to provide specialized technical assistance to enhance rating credibility and facilitate effective networking and collaboration between the alliance and global ESG organizations and experts.

Li Di, associate professor of finance at Peking University HSBC Business School, said the University of Hong Kong and Peking University, both of which are internationally renowned institutions which have carried out in-depth research on ESG, will make valuable contributions to building a more efficient and rational ESG evaluation system.

As part of the event, the annual selection of best ESG performers in Hong Kong was opened for registration from Wednesday.