As one of China's most open and economically vibrant areas, the GBA’s Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area includes sustainable development concepts such as green development and improving people’s livelihood. HSBC has released the first GBA ESG Index in Q4 2022 to effectively reflect the status and direction of sustainable development in the GBA.
Developed in partnership with China Energy Conservation and Environmental Protection Group (CECEP) Environmental Consulting Group Limited, a consultancy specialising in sustainable management as well as green and sustainable finance, the HSBC GBA ESG Index provides holistic insights into the area’s sustainable development.
The GBA ESG Index uses a combination of macro and micro methodologies and is updated quarterly. As well as the main GBA ESG Regional Index, a number of sub-indices are compiled, including City Sub-indices, Industry Sub-indices and Sub-indices by company size. The GBA ESG Index aims to objectively reflect and track the GBA’s sustainable development and its ESG.
From a macro perspective, we analyse the region, cities and industrial characteristics from five areas: policy, environment, economic and social development, corporate governance, and green and sustainable finance. The ESG performance of companies is evaluated from a micro perspective using the following five first-level indicators: environmental, social, governance, green and sustainable finance, and external assurance. To these an adjustment indicator, ESG reputation, is added which takes negative or controversial ESG events into consideration.
Over the past several years, and within the framework of the 14th Five-Year Plan, the GBA has invested successfully in economic and social areas. The GBA is increasingly focused on addressing the needs of the upcoming years, setting the stage for the next phase of development.
Recent policies in GBA are significantly aligned with the key topics identified in the preliminary study phase of the 15th Five-Year Plan. Our study observed that the policies issued by the GBA in Q2 are focused on three strategic pillars: strengthening social welfare systems for vulnerable groups, accelerating technology-driven industrial transformation, and enhancing environmental governance mechanisms. These policies reinforce the region’s commitment to sustainable development in the upcoming planning cycle.
In recent years, the GBA has effectively translated the guidelines outlined in the 14th Five-Year Plan into measurable outcomes. Specifically, fuelled by sustained government and market support, the GBA has honed its technological edge and delivered strong results across innovation and industry. Furthermore, by leveraging trade-in programs, the region has boosted domestic market consumption, with a particular emphasis on green consumption.
The Hong Kong government was the leading issuer in the GSSS bond market in Q2, accounting for approximately 38% of the total issuance volume. Green bonds were the most actively traded. More cities participated in the GSSS bond market in Q2 compared to the previous quarter. 29 mutual funds were introduced in the GBA’s sustainable investment market in Q2, and there was greater balance in the distribution of funds across different themes.
This report examines the evolution of smart healthcare in the region and explores its impact on sustainability trajectories, with a particular focus on social inclusivity. By leveraging telecommunication technology and artificial intelligence (AI), smart healthcare is breaking down geographical barriers, enhancing resource sharing, and reducing costs. It is also shifting health interventions from a reactive to a proactive stance, prioritising emergency prevention and everyday health management.
There is no standard definition of, measurement criteria, or methodology for ESG/Sustainability assessments. HSBC did not conduct specific due diligence on the methodology used in the research for this report. ESG/Sustainability assessment is an evolving area and new regulations and measurement criteria may come into effect which may affect how a specific criteria such as a geographical area, industry or business sector is categorised or labelled. A criteria such as geographical location, industry or business sector which is considered to fulfil ESG/sustainable criteria today may not meet those criteria at some point in the future.
Today we finance a number of industries that significantly contribute to greenhouse gas emissions. We have a strategy to help our customers to reduce their emissions and to reduce our own. For more information visit www.hsbc.com/sustainability
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