Corporate SUSTAINABILITY report (also known as SUSTAINABILITY/ESG report) is a communication method by which an enterprise regularly discloses its concept, strategy and method of fulfilling its social responsibility and the impact of its business activities in economic, social and environmental dimensions to stakeholders. By compiling and releasing CSR reports, enterprises can systematically sort out and analyze various liability risks and promote the improvement of internal management of enterprises. It is beneficial to implement the sustainable strategy of the enterprise in all the work; It will help meet the needs of all stakeholders and enhance the corporate image and influence.

Effective disclosure can bring many benefits to the enterprise

Strengthen the management of environmental and social risks, and promote the improvement of enterprises' sustainable development ability.

Establish a responsible corporate brand and image, improve corporate reputation.

Meet the regulatory requirements of the government and industry associations, comply with regulations and systematically demonstrate their CSR/ESG performance.

Choose responsible suppliers, jointly safeguard the rights and interests of customers, improve customer satisfaction.

Focus on internal employee growth, attract and retain talent.

Continue to make contributions to the community, enterprises and society win-win.

For companies just starting out, sustainability reporting can seem daunting. However, it is important to remember that sustainable development reporting is a sustainable process. This process allows the business to identify issues of interest to stakeholders. Through reporting, stakeholders can hear the business story.

Report frame option

The reporting framework aims to improve the comparability and credibility of corporate sustainability reporting worldwide. Companies can choose to report according to the GRI or HKEx's ESG reporting framework. Both frameworks have economic, environmental and social dimensions.

Global Reporting Initiative (GRI) Reporting framework

GRI is the most widely used sustainability reporting standard in the world. It provides reporting principles, disclosure standards, and implementation manuals for organizations of all sizes, industries, and locations to prepare corporate social responsibility reports (or corporate sustainability reports).

The goal of GRI-G4, the fourth update, is to make sustainability reporting standard practice by including important information on key sustainability issues in the preparation of corporate social responsibility reports. Compared to the previous G3.1 release, G4 is not only easier to use, but allows organizations to focus on the reporting process and report on issues that are substantive to their business and key stakeholders. Focusing on "substance" will make reporting more relevant, reliable, and easier to use. It will also help reporting agencies better inform the market and society on sustainable development matters.

GRI-G4 provides agencies with two options for preparing sustainable development reports in accordance with the guidelines: the core option and the comprehensive option. Any organisation can be selected according to its size, type of industry and location.

The core programme contains the basic content of the report, which explains the context in which the agency communicates the impact of its economic, environmental, social and governance performance.

The comprehensive plan builds on the core plan with additional disclosure of standards for strategy and analysis, governance, business ethics and integrity. In addition, institutions are required to disclose all indicators relevant to identifying substantive aspects to give a fuller picture of performance.

Hkex Guidelines on Environmental, Social and Governance Reporting

On 17 July 2015, the Stock Exchange of Hong Kong (" HKEx ") released a consultation paper on proposed amendments to the Guidelines on Environmental, Social and Governance Reporting (Appendix 27 to the Main Board Listing Rules, "ESG"). In the consultation document, HKEx made the following demands:

Effective Date: The new Listing Rules and Guidelines will be implemented in the fiscal year starting on or after January 1, 2016. Companies are required to disclose environmental, social and governance information annually, covering the same period as their annual report.

Accountability: The Board is fully responsible for the corporate environmental, social and governance strategy and reporting. The Board is responsible for the assessment and formulation of environmental, social and governance risks in the enterprise and for ensuring that appropriate and effective environmental, social and governance risk management and internal monitoring systems are in place. Management shall provide the Board with confirmation of the effectiveness of the system.

Form of reporting: Environmental, social and governance reports can be published in the company's annual report, in a separate report or on the company's website. Whatever form is adopted, environmental, social and governance reports should be available on the website of the exchange and the business. If environmental, social and governance reports are not included in a company's annual report, the company should publish the information as close as possible to the time of publication of its annual report and not later than three months after the publication of its annual report.

Scope of entity: The environmental, social and governance report should also include the group entity and/or operation covered by the report. If the scope is changed, the enterprise shall explain the difference and the reason for the change.

Principles of reporting: Importance, quantification, balance, consistency.

Contents of the report:

The environmental, social and governance report should set out the company's environmental, social and governance management policies, strategies, relevant importance and objectives, and explain how they relate to the company's business.

Elevates to "comply or explain" the 11 levels of general disclosure responsibility under the environmental and social main categories and all key performance indicators under the environmental category.

The above revision suggestions reflect that the capital market pays more and more attention to the sustainable development ability of listed companies while paying attention to the current operation and profit status of listed companies. Non-financial management policies and performance can provide more comprehensive and extensive information for investors to evaluate the enterprise. Not only that, but also as a communication medium, this report also shows the soft power of listed companies to investors, customers, employees, communities and other stakeholders, helping them build brand and image.