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Home Application ESG

Hong Kong trails in ESG and sustainability performance

FutureIoT Editors by FutureIoT Editors
September 26, 2024
Photo by Julia Volk: https://www.pexels.com/photo/ship-moored-in-hong-kong-5656740/

Photo by Julia Volk: https://www.pexels.com/photo/ship-moored-in-hong-kong-5656740/

A recent report by Sandpiper reveals that Hong Kong organisations are struggling with their reputation management, particularly in the realms of environmental, social, and governance (ESG) and sustainability. The Sandpiper Global Reputation Capital Index indicates that only 2% of organisations in Hong Kong are recognised as leaders in reputation management, and a staggering 65% reported negative impacts from reputational weaknesses over the past year.

Source: Sandpiper 2024

Among the surveyed leaders, 53% expressed that managing reputation is becoming increasingly challenging. Despite 59% recognising that a strong reputation is vital for commercial success, less than half rate their performance as strong in any key areas. Emma Smith, CEO of Sandpiper, stated, “As the risk landscape increases and communications channels are increasingly fragmented, the rules of reputation management have changed. Business leaders need to employ a holistic approach to navigate emerging digital risks.”

The report highlights that while 86% of respondents view progress in ESG and sustainability as crucial, only 31% consider their organisations strong in this area. Alarmingly, 41% of organisations fall into the "Beginner" category, indicating a lack of established sustainability strategies. Furthermore, 68% of leaders doubt the accuracy of their ESG communications, and only 20% have a climate communications strategy.

Concerns over misinformation, data privacy, and stakeholder activism are prevalent, with 96% of leaders worried about these emerging reputational risks. However, many feel ill-prepared to address them, indicating a significant strategy-to-action gap. Smith remarked, “The appetite to increase investment in resources for reputation management efforts in the coming year is a positive sign.”

With 73% of Hong Kong organisations planning to boost their reputation management investments, the potential for improvement is clear. However, immediate action is needed to align strategies with effective execution in the face of rising scrutiny and changing expectations.

Related:  Cement industry to drive digital investment to curve carbon footprint
Tags: Sandpipersustainability performance
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Standardisation and tech are keys to unlocking growth in Asia's supply chains

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Photo by Polina Tankilevitch: https://www.pexels.com/photo/hand-of-a-woman-showing-palm-with-a-word-no-4830656/

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