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Environmental sustainability

Hong Kong, China, Emphasizes Sustainable Supply Chains to Foster Shared Prosperity

Strategic Insights

— 1 min read

Hong Kong, China (HKC), has been at the forefront of implementing measures to support sustainable supply chains, underscoring its commitment to fostering shared prosperity through sustainable trade. As a key player in global logistics and shipping, HKC recognizes the importance of balancing economic growth with environmental and social responsibility. The city's Climate Action Plan 2050 outlines four major decarbonization strategies, aiming to decouple economic growth from carbon emissions.

Key Takeaways:

  • HKC has launched a roadmap on sustainability disclosure in December 2024, aiming to align local requirements with the International Financial Reporting Standards - Sustainability Disclosure Standards (ISSB Standards) by 2028.
  • The roadmap is designed to facilitate the integration of environmental, social, and governance (ESG) factors into financial reporting, enhancing transparency and accountability.
  • Funding schemes and capacity building programs have been put in place to support micro, small, and medium-sized enterprises (MSMEs) in adopting digital technologies and facilitating the digital transformation of supply chains.
  • HKC's Climate Action Plan 2050 encompasses four major decarbonization strategies: net-zero electricity generation, energy saving and green buildings, green transport, and waste reduction.
  • The government has initiated a study on developing green and sustainable logistics, aiming to capitalize on business opportunities in green logistics.
  • HKC has been collaborating with APEC member economies to strengthen sustainable supply chains, promoting the importance of sustainable trade in driving shared prosperity.

Statistics:

  • By 2028, HKC aims to align its local requirements with the ISSB Standards, making it one of the first jurisdictions to adopt the ISSB Standards.
  • The roadmap on sustainability disclosure will cover large publicly accountable entities, with the goal of promoting transparency and accountability in financial reporting.
  • Funding schemes and capacity building programs will support over 500 MSMEs in adopting digital technologies and transforming their supply chains.

Sources:

  • Hong Kong SAR Government
  • Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting in Jeju, Korea, on May 16
  • Contify.com

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