On July 29, the Hong Kong Brand Development Council (BDC) and the Chinese Manufacturers' Association of Hong Kong (CMA) released the "2025 Survey and Analysis Report on the Current Status and Trends of ESG Development among Hong Kong Enterprises," revealing the current status and trends of ESG development among Hong Kong companies, particularly SMEs, and providing key policy recommendations for the government and businesses.

The report surveyed 328 companies that renewed their ESG Charters within the first five months of 2025. The research team also conducted a questionnaire survey on "Hong Kong Enterprises' ESG Development Intentions," receiving responses from 321 companies.

The findings primarily reflect the progress of Hong Kong's pioneers or leaders in ESG development. The survey subjects represent a wide range of industries, with approximately 25% of manufacturing companies, 6.1% of construction and engineering companies, and nearly 70% of service companies, representing a broad cross-sector representation.

The key findings of the "2025 Study" are summarized below:

A multi-pronged approach remains the mainstream strategy within the industry.

The study found that participating companies generally favored advancing ESG across multiple fronts. On average, each company implemented eight to 11 improvements or enhancements in each of the E, S, and G areas over the past year, far exceeding the Charter's minimum threshold of at least one improvement or enhancement in each area.

While the number of ESG actions pledged in the Charter for the coming year decreased slightly compared to last year, each company still planned an average of seven to ten measures across the three major areas (E, S, and G). Furthermore, over 60% of companies indicated they would implement at least three measures across all three areas simultaneously, reflecting a widespread industry strategy of "multi-pronged advancement" and "simultaneous progress."

Popular measures were concentrated in the S and G areas.

Among the top ten popular measures, S and G each accounted for five and three measures, respectively, while E accounted for two. Maintaining good relationships with suppliers, investors, and other business partners has for the first time been included among the top ten initiatives planned for implementation in the coming year. This may suggest that companies are taking an "inside-out" approach to fulfilling their social responsibilities, gradually expanding their focus from enhancing internal cohesion to strengthening relationships with supply chain partners.

ESG implementation strategies vary significantly across industries and company types.

Of the 328 participating companies, 90 were listed companies, while 238 were non-listed companies. Generally speaking, listed companies are larger, with greater financial resources and resources.

Over 60% (61.1%) of listed companies indicated the adoption of new environmental technologies and advanced equipment, a significantly higher proportion than non-listed companies (48.7%). This may be due to listed companies having greater financial resources and the willingness to proactively invest in environmental protection. Conversely, non-listed companies prefer lower-threshold measures such as paperless operations.

Construction engineering companies are at the forefront in reducing carbon emissions and implementing carbon audits, promoting material conservation and recycling, and applying for ESG-related certification and accreditation programs, such as occupational health and safety. The percentages of companies implementing these three measures, 65%, 65%, and 80%, respectively, are significantly higher than those of manufacturing and other service industries. This may be closely related to the local construction industry's relatively high technical readiness in ESG standards in recent years.

Attention to ESG remains high.

Nearly 90% of responding companies indicated that their level of attention to ESG has "significantly increased" or "increased," and over 80% of responding companies indicated that their investment in human and financial resources for ESG will "significantly increase" or "increase" in the coming year. Their views on industry trends and social climate are also very similar, reflecting the continued high level of public interest in ESG and their commitment to action.

Notably, responding companies expect resources allocated to ESG development in the coming year to be evenly distributed across the three major areas of E, S, and G. Compared to the "high, low, and medium" distribution found in last year's survey, this year's corporate resource allocation to ESG initiatives appears more balanced.

ESG helps enhance brand image and value.

Responding companies strongly agree that ESG implementation can bring multiple benefits to companies, including enhancing corporate and brand image, increasing brand value, enhancing market competitiveness, aligning with the company's long-term interests, and aligning with the company's development philosophy and business policies. These "value-dimensional" factors related to corporate and brand image have a greater impact than "benefit-dimensional" factors, such as reducing operating costs, generating direct or indirect commercial/economic benefits, strengthening supply chain partnerships, and expanding business growth opportunities.

Overall, the survey data demonstrates that ESG can bring both intangible (brand image) and tangible (commercial benefits) benefits to Hong Kong companies, with the positive impact on brand image and value being particularly significant.

Both internal and external factors drive companies to develop ESG initiatives.

The majority of responding companies believe that their motivation for ESG development stems from multiple factors. Many responding companies expressed a desire to enhance their brand and corporate image by incorporating ESG elements. Other factors driving ESG initiatives include exploring new productivity and future directions, improving operational performance, meeting the demands of business partners, addressing regulatory and compliance requirements, and responding to consumer awareness of ESG. These drivers of ESG initiatives can be categorized into two main groups: "external pressures" and "internal opportunities." The latter exhibited greater explanatory power, reflecting a stronger internal desire to seize development opportunities.

Over 80% of responding companies indicated they would participate in ESG-related recognition, certification, and award programs to enhance their image and brand. Over 80% also opted to strengthen their ESG capabilities through enhanced learning and training.

Companies hope for greater support.

The three major challenges to ESG implementation are difficulty in data collection, insufficient awareness, and funding constraints. 81% of companies indicated they would strengthen ESG training to enhance their capabilities and address shortcomings, but they still hope for greater support from the government and community organizations. Among them, providing financial support, such as grants and tax deductions, was rated "important" or "very important" by over 95% of responding companies, earning it the highest weighted rating.

In addition to "increasing funding," "setting standards" and "disseminating information" are also key areas for the SAR government and Hong Kong society to jointly build a favorable ESG development ecosystem.

In summary, despite the current enthusiasm for ESG development in the local industry, it is still in its initial, exploratory phase, and government guidance and support are crucial.

Brand Bureau Chairman Chan Ka-wai stated that the increasing focus on ESG by Hong Kong companies lies in implementing this philosophy into daily operations and business strategies. This research reveals the practical approaches of industry pioneers, which are worth learning from. He suggested that SMEs should start with "quick-acting" S and G measures, such as paperless operations and carbon reduction initiatives, to meet the needs of green transformation. The industry can also strengthen the synergistic development of "ESG + branding" through training, certification, and benchmarking.

Author：Qinger