A study indicates that 99.7 percent of surveyed enterprises in the Greater Bay Area (GBA) plan to integrate Environmental, Social, and Governance (ESG) elements into their business operations over the next two years.

These findings are detailed in a recent report by the Hong Kong Trade Development Council (HKTDC).

The ESG framework is used to assess an organization’s business operations and performance across a range of sustainability and ethical concerns. By embracing ESG initiatives, companies can promote business sustainability through responsible corporate management and strategic planning.

The report, titled “Unleashing Green Potential: Exploring Sustainable Development Opportunities in the Greater Bay Area,” highlights that currently, 65 percent of the GBA enterprises interviewed have already implemented sustainable development initiatives.

The green practices adopted by these companies include resource recycling, clean energy adoption, green office policies, and energy conservation measures.

Embracing ESG initiatives offers substantial benefits, including cost reduction, alignment with evolving trends, and access to broader market opportunities, according to the interviewed GBA enterprises.

However, the firms expressed that they face several key obstacles in implementing ESG initiatives, including a perceived lack of relevant experience, cost pressures, and the absence of unified standards.

In response to the challenges of limited resources and budget constraints, companies have voiced their urgent need for green loans and financing services, specific ESG indicators provided by government or professional institutions, and access to professional and reasonably priced sustainable development consulting services.

Among the interviewed companies, 30 percent have plans to increase their budget allocation for ESG elements, while 64 percent intend to maintain their current investment levels.