@ green | January-February . 2024

About 70 per cent of enterprises are considering using more Hong Kong green solutions in the next two years

BY KHIRTINI KUMARAN

The comprehensive report , titled ‘ Sustainability in the GBA : Unlocking Opportunities and Empowering Growth ,’ shed light on the region ’ s commitment to environmentally conscious initiatives .

The study highlighted that the top three green practices adopted by GBA enterprises encompass resource recycling , clean energy integration , and eco-friendly office practices , including using energy-efficient equipment , paperless offices , and online systems .

Impressively , 98 per cent of these environmentally proactive businesses reported positive impacts , citing enhanced brand reputation , increased brand recognition , improved energy efficiency , and cost reduction as notable benefits .

Moreover , the research underscores Hong Kong ’ s strategic advantages in green building technologies , green consulting services , expertise in green sectors , and advanced technology .

GBA enterprises express a strong inclination to tap into Hong Kong ’ s capabilities , showcasing a robust willingness to explore and adopt the city ’ s sustainable development services .

The HKTDC-UOB survey , conducted through a comprehensive online questionnaire and in-depth interviews with 300 leading enterprises in the 11 GBA cities , provides valuable insights into the region ’ s commitment to sustainable practices and its recognition of Hong Kong as a key partner in driving green initiatives .

GBA ’ S GREEN SUSTAINABLE DEVELOPMENT

Based on the report , an overwhelming 99.7 per cent expressed their commitment to incorporating or intensifying ESG elements in their operations over the next two years .

Additionally , over 90 per cent of these enterprises are planning to increase or maintain their ESG-based investments , with 30 per cent indicating an increase and 64 per cent maintaining current investment levels .

The average budget allocated to ESG initiatives is expected to be HK $ 370,000 ( US $ 47,000 ) over the next two years .

Despite this commitment , GBA enterprises face challenges implementing green , sustainable development .

Approximately 77 per cent cited a lack of experience as a hindrance , 67 per cent mentioned cost pressures and 61 per cent identified an absence of unified standards .

The surveyed enterprises highlighted the need for standardised guidelines and success stories in the market , expressing concerns about significant upfront investments and difficulties in achieving short-term returns .

Hong Kong emerges as a preferred destination for green-related services , with most respondents acknowledging its strengths in green construction technology , climate risk assessment , design consultancy , green financial services , and green technology provision .

The city is perceived as having a substantial pool of environmentally aware professionals .

Looking ahead , about 70 per cent of surveyed enterprises are considering or planning to increase their usage of Hong Kong ’ s green and sustainable solutions over the next two years .

The confidence in Hong Kong ’ s ability to accelerate green sustainable development within the region is evident , especially in green technology deployment , energy efficiency , recycling , and the availability of various green financial products and services .

GBA enterprises strongly desire to learn more about 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 the use of green applications , engagement in sustainable

From left : Brian Lam , Chief Financial Officer and Chief Sustainability Officer of UOB Hong Kong , and Irina Fan , Director of HKTDC Research . development roadmap planning and consultancy services , access to green-focused professional talents and advanced technology , utilisation of ESG reporting , due diligence , ESG ratings , and green asset valuation services , as well as the use of green financial products and services .

HUGE OPPORTUNITIES FOR GROWING GREEN AND SUSTAINABLE PRACTICES

During the report presentation session , 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 want to incorporate ESG into various business aspects , translating into an average spend of HK $ 370,000 ( US $ 47,000 ) per company in the next two years .

“ There are about three million enterprises in the GBA ; this could mean a HK $ 1 trillion ESG investment scenario . Much of which will likely be channelled 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 .

“ About 70 per cent of surveyed respondents considered using or increasing the use 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 .”

UOB Hong Kong Chief Financial Officer and Chief Sustainability Officer Brian Lam said : “ We recognise the imperative need for GBA enterprises to incorporate sustainability practices into their business strategies .

“ The report highlights the insufficiency of resources , funds and unified standards towards sustainable development , which poses a challenge to successfully implementing green transformation plans and achieving decarbonisation targets .

“ UOB takes our responsibility to provide and channel capital to facilitate continued investments in sectors critical to the energy transition very seriously .

“ With the growing demand for sustainable finance , we aim to simplify access to sustainable financing for clients , strengthen their ESG capabilities and support them in transitioning their business models to reduce carbon emissions and seize new business opportunities . Together , we create a greater positive impact and drive sustainable progress .” – @ green