To gain a deeper understanding of companies' engagement with these issues and their current business positions, the HKTDC and the ACCA have undertaken a joint research initiative, including a comprehensive survey of the sustainability strategies and beliefs of a representative selection of mainland China, Hong Kong and Macao‑based businesses. In specific terms, the study aims to assess corporate understanding and the varied perspectives relating to sustainability, as well as developing an understanding of the various costs and benefits, as well as the sundry strategic approaches to securing sustainability. In addition to quantitative analysis, in‑depth interviews with industry professionals were conducted as a means of providing insights into the qualitative aspects of such issues.

Key findings (Part 2) are as follows:

Carbon reduction, green office and environmental protection measures are widely implemented and set to be continued / enhanced

More and more enterprises are actively incorporating a variety of sustainable measures into their daily operations. In fact, more than 60% of survey respondents said they had implemented energy conservation and carbon reduction measures (69%), including remodelling, to save energy / reduce carbon emissions and restrict greenhouse gas production. Other widely‑adopted measures included green office practices (65%), such as the use of efficient energy‑saving equipment, paperless offices and online systems; and environmental protection (64%), such as the use of environmental equipment and eco‑friendly raw materials to reduce pollution. Additionally, 46% of participating companies had commenced ESG reporting, while 31% had already started to use green services, such as certification, monitoring and testing, assessment reviews and green financial products.

Enterprises are also demonstrating considerable commitment when it comes to sustainable business / investment. According to the survey, about half of all interviewed companies plan to prioritise increased funding for energy conservation (53%), green office practices (51%) and environmental protection (45%) in the next three years in order to enhance the sustainability of their business operations / investments in China. ESG reporting (39%) is also a focus for more investment, largely as it provides information on the progress of enterprises' sustainable development practices while also highlighting their commitments in this area.

Differing sustainable business / investment priorities by sector and investment source

While energy conservation and carbon reduction are the priorities for manufacturers and domestically‑backed enterprises, service‑oriented companies and foreign‑invested enterprises tend to put greater emphasis on funding green office practices.

Challenges and Opportunities

Prioritising green and sustainable development / investments is believed to incur additional costs

Respondents generally consider that cost pressures (82%), a lack of drive (43%) and confusing standards (40%) are the three main factors hindering China‑centric enterprises when it comes to successfully integrating sustainability business / investment measures. More specifically, many enterprises have concerns that while substantial upfront investment is required, any benefits likely to accrue may be limited or uncertain in the short term. There are also uncertainties over the likelihood of securing funding from green‑financing channels.

Respondents also indicated that shortfalls in related knowledge (37%), talent (28%) and a lack of practical green practice experience (27%) may undermine China‑focussed sustainability business / investment commitments.