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- Exchange launches new repository to aid access to information on and transparency around board diversity
- Exchange also introduces a new section to ESG Academy to improve issuers’ ESG practices
The Stock Exchange of Hong Kong Limited (the Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) launched a new diversity repository, and introduced an “ESG in Practice” section to the ESG Academy.
“At HKEX we are committed to promoting diversity and ESG excellence amongst our listed issuers, helping to enhance Hong Kong’s position as a leading governance and ESG hub in Asia. We believe these new initiatives will further help enhance board diversity and ESG practices, complementing the revised Corporate Governance Code and related rules that came into effect this year,” said Bonnie Y Chan, HKEX’s Head of Listing.
Board Diversity & Inclusion in Focus
The Exchange is committed to promoting board diversity amongst our issuers, and has recently introduced new rules1 to end single-gender boards. The new repository, “Board Diversity & Inclusion in Focus”, aims to improve access to information on and transparency around board diversity, enabling investors and other stakeholders to stay informed of businesses’ policy and approach to good governance and board diversity.
Data regarding each issuer’s board of directors, by age, gender and years of tenure, will be available on the centralised platform. Issuers, investors and stakeholders are able to choose a particular industry sector to facilitate assessment of the company’s performance against peers.
ESG in Practice
The Exchange is pleased to enhance its ESG Academy with the introduction of “ESG in Practice”, following the much-welcomed publication of the Guidance on Climate Disclosures in November 2021. This is part of the Exchange’s ongoing efforts to provide timely, relevant and useful guidance and information to the market. The new section highlights the Exchange’s latest ESG regulatory developments, and provides examples of exemplary ESG practices amongst its issuers.
The Exchange will look to continue to review its ESG framework, prioritising board governance and climate-related disclosures (including further alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and adoption of the new standard(s) to be developed by the International Sustainability Standards Board under the International Financial Reporting Standards Foundation2), and will update the market with any further guidance as appropriate.
Notes:
- The Exchange will not consider diversity to be achieved for a single gender board (Main Board Listing Rule 13.92 / GEM Listing Rule 17.104).
- The Green and Sustainable Finance Cross-Agency Steering Group has announced that TCFD-aligned climate-related disclosures will be mandatory across relevant sectors no later than 2025. The Steering Group also indicated its support towards adopting the standard to be developed by the International Sustainability Standards Board.
