BSI 2024 Result Announcement

The Centre for Business Sustainability (CBS) of the Chinese University of Hong Kong (CUHK) Business School has recently announced the results of the latest Business Sustainability Indices (BSI).

The new series of indices provide insights of ESG performance across different sectors in Hong Kong, the Greater Bay Area, Greater China, and globally. Based on data drawn from the sustainability reports of top listed companies in the (financial) year of 2022, the findings shed light on the key trends, driving factors and ongoing challenges in business sustainability practices.

In his opening remark, Professor Zhou Lin, dean of CUHK Business School, highlighted the School’s dedication to cultivating future business leaders with a sustainability-driven mindset through initiatives like the MSc in Sustainable Global Business programme

Representatives from companies achieving exceptional performance in business sustainability

The 9th Hong Kong BSI (HKBSI)

The Top 10 HKBSI Company Ranking
1. The Hong Kong and China Gas Co Ltd
2. BOC Hong Kong (Holdings) Limited
3. Sun Hung Kai Propoerties Ltd
4. MTR Corporation Limited
5. HSBC Holdings plc
6. Sands China Ltd
7. China Resources Power Holdings Co Ltd
8. Henderson Land Development Co Ltd
9. CLP Holdings Ltd
10. Power Assets Holdings Ltd

The latest results of HKBSI indicate a continued improvement in sustainability practices among the 80 Hang Seng Index constituents, achieving a year-on-year increase in the total score by 5.59 per cent. Driven by investor priorities, investor-related sustainability remains strong and achieves remarkable scores. Employee and environmental engagement also show positive growth. Following the trajectory of the COVID-19 pandemic, community scores decline after a remarkable increase recorded the year before. Notably, supplier management practices improve, reflecting Hong Kong’s ongoing commitment to sustainability across stakeholder groups. However, translating these practices into tangible supplier impacts remains challenging, leaving room for improvement in achieving impactful supply chain engagement.

Result: 9th HKBSI

The 5th Greater Bay Area BSI (GBABSI)

The Top 10 GBABSI Company Ranking
1. The Hong Kong and China Gas Co Ltd
2. BOC Hong Kong (Holdings) Limited
3. Sun Hung Kai Propoerties Ltd
4. MTR Corporation Limited
5. Sands China Ltd
6. China Resources Power Holdings Co Ltd
7. Sino Land Company Limited
8. MGM China Holdings Ltd
9. Henderson Land Development Co Ltd
10. CLP Holdings Ltd

GBABSI, covering 63 Hang Seng Stock Connect Hong Kong Greater Bay Area Index constituents, highlights a significant increase of 10.33 per cent in the total score over the previous year, driven by marked improvements in value and management. While the gap between Greater Bay Area (GBA) and Hong Kong sustainability scores narrows and overall improvements underscore the region’s commitment to robust ESG standards, a drop in the supply chain practice score indicates that companies in the GBA are facing challenges in consistent supply chain management.

Result: 5th GBABSI

4th Greater China BSI (GCBSI)

The Top 10 GCBSI Company Ranking
1. The Hong Kong and China Gas Co Ltd
2. BOC Hong Kong (Holdings) Limited
3. Sun Hung Kai Propoerties Ltd
4. MTR Corporation Limited
5. HSBC Holdings plc
6. Sands China Ltd
7. Taishin Financial Holding Co Ltd
8. China Resources Power Holdings Co Ltd
9. TCC Group Holdings
10. The Shanghai Commercial & Savings Bank Ltd

Comprising 218 listed companies in Hong Kong, Shanghai, Shenzhen, and Taiwan, the GCBSI saw a 5.47 per cent improvement in the overall score with significant gains in values, management, and impact. Taiwan consistently leads in all areas, with Hong Kong showing steady improvements. In contrast, Shanghai and Shenzhen faced significant declines in practice scores, emphasising a need for better ESG strategies in these regions. Stakeholder practice patterns reveal that Hong Kong and Taiwan maintain a balanced stakeholder approach, while Shanghai and Shenzhen focus heavily on investors. Despite the challenges, advancements in supplier practices and governance are evident, reflecting the potential for further alignment across the Greater China region.

Result: 4th GCBSI

2nd Global (Asia Pacific) BSI

The Top 10 Global BSI Company Ranking
1. The Hong Kong and China Gas Co Ltd
2. BOC Hong Kong (Holdings) Limited
3. Sun Hung Kai Propoerties Ltd
4. MTR Corporation Limited
5. HSBC Holdings plc
6. Sands China Ltd
7. China Resources Power Holdings Co Ltd
8. Henderson Land Development Co Ltd
9. CLP Holdings Ltd
10. Power Assets Holdings Ltd

Comprising 157 constituents from Hong Kong, Australia and Singapore, the Global (Asia Pacific) BSI shows a consistent upward trend with all regions achieving higher overall scores. Australian constituents make remarkable progress with a 12.21 per cent increase in the total score, driven by the progress in management and impact scores. Regarding the stakeholder practice score, Singapore has a relatively high score in investor relations, whereas Hong Kong demonstrates a fair balance in each stakeholder engagement area.

Result: 2nd Global BSI

1st Real Estate BSI

The Top 10 list of the Real Estate BSI (in alphabetical order)
• China Overseas Land & Investment Ltd
• Hang Lung Properties Ltd
• Henderson Land Development Co Ltd
• Kerry Properties Limited
• New World Development Co Ltd
• Sino Land Company Limited
• Sun Hung Kai Properties Ltd
• Swire Properties Ltd
• The Wharf (Holdings) Limited
• Wharf Real Estate Investment Co Ltd

The first Real Estate BSI evaluates 26 companies from the HKBSI, GBABSI, and GCBSI within the properties and construction sector. Hong Kong-listed companies achieve the highest sustainability scores, outperforming their counterparts in Shanghai and Shenzhen. The findings underscore Hong Kong’s leadership in advancing sustainable practices in real estate in the region and highlights the need to develop more robust sustainability frameworks in mainland China’s markets.

4th Hotel BSI

The Top 10 list of the Hotel BSI (in alphabetical order)
• Galaxy Entertainment Group Limited
• Hilton Worldwide Holdings Inc
• Hyatt Hotels Corporation
• Marriott International Inc
• MGM China Holdings Limited
• Sands China Ltd
• Shanghai Jin Jiang International Hotels Co Ltd
• Sino Hotels (Holdings) Limited
• The Hongkong and Shanghai Hotels Limited
• Wynn Macau Limited

The overall average score of all constituents in the Hotel BSI increases by 13.98 per cent from last year to 61.53, underpinning by the industry’s growing commitment to ESG excellence. Mainland China hotels demonstrate exceptional progress, marking a 58.91 per cent increase to 49.5, and a constituent breaking into the Top 10, which is a milestone driven by improved transparency through the publication of independent ESG/CSR reports. However, declining practice scores with government stakeholders signal the need for strengthened collaborations post-pandemic to sustain impactful partnerships.