HSBC GBA ESG index records year-on-year uptick in third quarter 2024
HSBC, in collaboration with CECEP Environmental Consulting Group, published today the 2024 Q3 HSBC GBA ESG Index report. During the quarter, the GBA ESG Regional Index rose 3 per cent from a year ago to 121.68, while the GBA ESG Industry Sub-indices also increased 20 per cent year-on-year to 211.67. The improvement is driven by the supply- and demand-side initiatives from both the public and private sectors aimed at promoting sustainable development in the region.
In August 2024, the Chinese Government introduced new guidelines to accelerate green transition across the country’s socio-economic development. These guidelines outline the objective to cultivate an environment conducive to sustainable development, positioning the GBA as a world-class green and low-carbon industrial cluster. In response to this initiative, regional governments are ramping up their efforts to drive green industrial development and enhance collaboration with the international community on low-carbon technologies.
Daniel Chan, Head of Greater Bay Area, HSBC, said: “The latest report data indicates an increase in financing need for the technology sector in the GBA. By the end of September 2024, Guangdong Province recorded 23 per cent year-on-year increase in outstanding medium- and long-term loans dedicated for scientific research and technological services. Meanwhile, the government is driving green consumption through demand-side initiatives such as various consumer goods trade-in schemes. Since the launch of the schemes in the third quarter, over 1.45 million household appliances have been purchased in less than a month.”
Liao Yuan, Managing Director and General Manager of CECEP (Hong Kong) Investment Company Limited, said: “The rise of green consumption has enhanced the overall ESG performance of the consumer discretionary sector, making it the top-performer among the eight surveyed sectors in Q3. Notably, the industry has witnessed a remarkable increase in the number of enterprises setting their emission reduction targets or making commitments via Science Based Target initiatives (SBTi), accounting for over 40 per cent of the total number among all surveyed sectors.”
The report also provided a detailed analysis of the hydrogen industry, examining current and future applications of this clean energy source within the GBA, as well as how the region can build a robust industrial chain and create synergy among different cities.
As one of the pioneers in the hydrogen industry, the GBA is home to a range of companies involved in various aspects of hydrogen applications. Businesses in the region are capitalising on their strengths in equipment manufacturing to lower hydrogen production costs and strengthen the industrial chain. They are also looking to overcome technological challenges, particularly in the area of green hydrogen production through renewable energy sources. Today, over 20 per cent of hydrogen producers in Guangdong utilise water electrolysis, a method known for its energy-efficiency and environmental benefits.
Note to editors:
- The eight key sectors include communication services, consumer discretionary, consumer staples, energy, financials, healthcare, industrials, and real estate.
- Methodology
Indicators for regional/cities and industry level
| First-level Indicator | Second-level Indicator |
|---|---|
| Environment | Corporate CDP disclosure performance |
| Corporate science-based climate commitments | |
| Air quality | |
| Energy use efficiency | |
| Water use efficiency | |
| Electricity use efficiency | |
| Public sector’s contribution to environmental protection | |
| Urban greenness | |
| Economic and Social Development | Economic development |
| Economic contribution of tertiary industry | |
| Employment situation | |
| Public sector’s contribution to education | |
| Innovation and technological advancement | |
| Corporate Governance | Activeness of market players |
| Corporate ESG disclosure performance | |
| Green and Sustainable Finance | Activeness of market players |
| Investor commitment to sustainable investing | |
| Volume of sustainable debt instruments | |
| Number of ESG mutual funds | |
| Policy | Policies related to sustainable development in the GBA |
Indicators for company level
| First-level Indicator | Second-level Indicator |
|---|---|
| Environmental | Greenhouse gas (GHG) emissions |
| GHG targets | |
| Waste management | |
| Water management | |
| Energy management | |
| Social | Employee data |
| Employee development | |
| Supply chain management | |
| Privacy and data security | |
| Philanthropic contribution | |
| R&D and innovation | |
| Governance | Board accountability for ESG |
| ESG risk management | |
| Executive pay linked to ESG | |
| Board gender diversity | |
| Board independence | |
| Green and sustainable Finance | Issuance of GSSS Bonds |
| External Assurance | ESG report external assurance |
(Source: CECEPEC)
Base period and update frequency
- Index base period: The fourth quarter of 2019
- Region/City and Industry-level data: Update quarterly
- Company-level data: Update annually
- Weight adjustment: Adjust annually
Limitations
- The Index is only applicable to the evaluation of the GBA, the cities, industries and companies in the GBA.
- The evaluation of ESG performance retrieved from the quantitative models is based on public data of listed companies, which we do not warrant or guarantee the accuracy and completeness of such disclosures.
- Given the incompleteness of publicly available macroeconomic data, performance evaluation on the GBA, cities, and industries could involve assumptions.
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of the world’s largest banking and financial services organisations.
CECEP Environmental Consulting Group Limited
CECEP Environmental Consulting Group Limited is a professional sustainability consulting company established by CECEP. We are headquartered in Hong Kong with branch offices in Beijing, Shenzhen and Shanghai. Our partners and clients are found throughout Greater China, Europe, and America, covering national governments, industry associations, mainstream financial institutions and nearly 200 well-known enterprises in and out of China. We are committed to providing bespoke solutions to satisfy the specific sustainability needs for various industries, which include sustainability management consulting, green and sustainable finance consulting, climate change and carbon neutrality consulting with implementation solutions, and others.
HSBC GBA ESG index records year-on-year uptick in third quarter 2024 (3-page PDF 52.8KB)