Sustainability: Chinese firms set growth plans as talent, costs dominate concerns

Name: SCMP
Telephone: +852-2680-8888

Hong Kong can provide intellectual support in terms of talent and guidance on capital flows, according to a research report on sustainability trends

Reading Time:2 minutes

Why you can trust SCMP

Cost pressures and talent deficit are among the biggest concerns highlighted by mainland Chinese companies in their sustainability drive.Photo: Shutterstock

Xinyi Wu

Published: 7:15pm, 5 Sep 2024

Sustainable investment in mainland China is set to expand over the next few years, and Hong Kong has a key role to play to support the trend by leveraging its regional financial hub status, according to a research report.

Some 30 per cent of mainland-based companies aim to increase their outlays in sustainable projects in the next three years, while 69 per cent plan to maintain their current level of commitments, according to a joint report by the Hong Kong Trade Development Council (HKTDC) and the Association of Chartered Certified Accounts (ACCA). They surveyed 283 companies from May to June this year.

Awareness of green financing options in mainland China is relatively low, with 47 to 56 per cent of respondents indicating a lack of familiarity with the choices.

“Hong Kong has the potential to make a significant and lasting impact on mainland China’s move to an ever more sustainable and environmentally friendly future,” said Irina Fan, director of research at HKTDC. About 37 per cent of sustainable bonds issued in Asia last year were arranged in the city, she added.

Why it makes good business sense to focus on ESG practices

Hong Kong is both the primary source of foreign direct investment into the mainland and the largest destination for the mainland’s outbound direct investment, Fan added.