Report: Over 40% of HKers distrust companies’ claims about their ESG activities

A majority of Hongkongers are aware of ESG, however, over 40% do not trust companies’ claims about their ESG activities, showing the importance for Hong Kong corporates to better communicate their ESG strategy and performance, a SEC Newgate survey finds.  

SEC Newgate’s fourth annual ESG Monitor report surveyed over 14,300 people across 14 countries and territories, revealing that governments and businesses worldwide are struggling to meet public expectations for ESG commitments. Out of the 14,300 respondents, 1,027 were from Hong Kong. 

According to the report, 85% of Hong Kong people are aware of ESG, versus only 54% globally, with 75% stating that the Hong Kong is generally “on the right track”. This shows the gap in ESG awareness between Hong Kong and the rest of the world remains wide.  

Two-thirds (67%) of the Hong Kong respondents think it’s important to transition to renewable/clean energy sources, while 67% think it’s important to act decisively on climate change. Nearly 40% of Hongkongers feel the energy transition is occurring too slowly (and 17% too fast), according to the report.  

Hongkongers' interest in ESG issues drops

Despite relatively high awareness, only one in four people in Hong Kong is very highly interested in ESG issues, a significant drop from last year, said the report.  

The proportion of Hong Kong participants who rate their interest as a nine or 10 out of 10 is down from 35% last year to 23% this year. This shift suggests Hongkoners may be highlighting more immediate economic and social priorities. 

Meanwhile, 68% agree that they expect companies to play a more active role in relation to ESG issues in society these days. Over two-thirds of Hongkongers (68%) agree that companies can be profitable while also performing well on their environmental, social and governance responsibilities.

While 64% of Hongkongers believe companies should prioritise the interests of all stakeholders, this figure is lower than the 78% global average and suggests a recognition that balancing the needs of various stakeholders can be a complex challenge for businesses operating in the city. 

Lack of trust towards companies ESG claims in HK

The report also found that 65% of Hongkongers expect corporates to more clearly communicate their ESG strategy and performance, while 41% do not trust companies’ claims about their ESG activities, underscoring the importance for corporates operating in Hong Kong to better articulate how they are embedding sustainability in their businesses and increase transparency around their KPIs and achievements. 

Beyond Hong Kong, the research found that awareness of the term 'ESG' was stable in 2024, scoring 54% globally versus 53% in 2023. Respondents in Hong Kong(43%), Singapore (41%) and UAE (39%) were more likely to say they had a good understanding of ESG, while Greece (11%), Colombia (11%), Poland (9%) and Spain (9%) had the lowest level of understanding. 

The survey also reveals strong expectations from the public for governments to act responsibly on ESG issues globally, with nearly three in five (58%) giving this an importance rating of nine or 10 out of 10. 

A similar majority (54%) said the same for large businesses, while expectations are lower for small to medium businesses (37%). However, people gave lacklustre performance ratings for all three groups when it comes to delivering strong ESG outcomes. Just over half rated governments and large businesses at seven or more out of 10 (53% and 54%) with a slightly more positive view towards small to medium businesses (58%). 

There is also strong belief (73%) that performing well on ESG responsibilities doesn’t have to come at the expense of profitability, while people overwhelmingly (78%) believe companies should act in the best interests of all stakeholders rather than prioritising shareholders ahead of other stakeholders. 

Fiorenzo Tagliabue, group CEO of SEC Newgate, said: “Our global ESG Monitor has found that corporate communication shortcomings are clear to see, with a large majority believing companies need to more clearly communicate what they are doing to improve their performance on ESG issues and address stakeholder needs.” 

James Hill, managing partner of SEC Newgate Greater China, added: “Expectations, but also disbelief, are high when it comes to ESG communication[...] Those results underscore the importance for corporates operating in Hong Kong to better articulate how they are embedding sustainability in their businesses and increase transparency around their KPIs and achievements so that stakeholders can more effectively measure progress.” 

Sue Vercoe, managing partner of SEC Newgate Australia and managing director of SEC Newgate research, added: “Despite other pressing concerns of the public in their day to day lives, most still see environmental, social and governance issues as important to address - even if they don’t view these through a formal ‘ESG’ lens. This is both a communication and operational challenge for businesses and governments. There is still much more work to be done when it comes to ESG.”

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