About 65% of enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) have adopted green and sustainable development practices in business operations, and about 70% said they would consider using more of Hong Kong’s green products and services over the next two years, a research report by the Hong Kong Trade Development Council (HKTDC) and UOB revealed.The report, Sustainability in the GBA: Unlocking Opportunities and Empowering Growth, revealed that the top three green practices adopted by GBA enterprises include resource recycling, clean energy adoption and green office practices (notably the use of energy-efficient office equipment, paperless offices and online office systems). Among these enterprises which have adopted green practices, 98% reported positive impact on their businesses, in particular increased brand reputation and brand recognition as well as improved energy efficiency and cost reduction. Other positive impacts include improved governance of corporate compliance and risk control, as well as better chances of securing market and business opportunities.
The report also highlighted that GBA enterprises acknowledge Hong Kong’s significant advantages in green building technologies, green consulting services, green financial services and expertise in green sectors and advanced technology. The firms expressed a strong willingness to explore and adopt sustainable development services offered by Hong Kong.
Huge opportunities from growing green and sustainable practices in the GBA
HKTDC Research Director Irina Fan said: “As sustainable development has become increasingly important, GBA-based businesses have become ever more committed to implementing ESG-related strategies. Nearly all GBA business are looking to incorporate ESG into various business aspects, which translates into an average spend of HK$370,000 (US$47,000) per company in the next two years. Now, there are about 3 million enterprises in the GBA, this could mean a scenario of HK$1 trillion ESG investment. Much of which will likely be channelled into Hong Kong-based green partner businesses.
“With high regard for the sustainable solutions offered in Hong Kong (average desirability score of 8.9 out of 10), GBA enterprises are keen to look to Hong Kong-based green partner businesses to accelerate their sustainable practices.” She added: “About 70% of surveyed respondents considered to use or increase usage of Hong Kong’s green and sustainable solutions. This is a real vote of confidence in the strength and breadth of Hong Kong’s green resources.”
Brian Lam, Chief Financial Officer and Chief Sustainability Officer, UOB Hong Kong, said: “We recognise the imperative need for GBA enterprises to incorporate sustainability practices into their business strategies. The report highlights the current insufficiency of resources, funds and unified standards towards sustainable development, which poses a challenge to the successful implementation of green transformation plans and achieving decarbonisation targets.
“UOB takes our responsibility to provide and channel capital to facilitate continued investments in sectors that are critical to the energy transition very seriously. With the growing demand for sustainable finance, our aim is to simplify access to sustainable financing for clients, strengthen their ESG capabilities and support them in the crucial task of transitioning their business models to reduce carbon emissions and seize new business opportunities.
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