Some 65% of enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) have implemented green and sustainable development practices, according to a new report by the Hong Kong Trade Development Council (HKTDC) and United Overseas Bank (UOB).
70% are also planning to increase their usage of Hong Kong's green solutions within the next two years.
The report, titled "Sustainability in the GBA: Unlocking Opportunities and Empowering Growth," underscores the top three sustainable practices adopted by GBA enterprises.
They are resource recycling, clean energy utilisation, and energy-efficient office practices. Of these enterprises, 98% reported experiencing benefits, including improved brand recognition and cost reduction.
ESG investment on the rise
HKTDC Research Director Irina Fan noted that nearly all businesses in the GBA intend to integrate environmental, social, and governance (ESG) strategies into their operations.
This could result in an estimated investment of HK$1 trillion (US$47,000) in ESG initiatives, much of which is expected to flow into Hong Kong-based green businesses.
"With high regard for the sustainable solutions offered in Hong Kong, GBA enterprises are keen to accelerate their sustainable practices," Fan said.
Brian Lam, chief financial officer and chief sustainability officer at UOB Hong Kong, highlighted challenges such as insufficient resources, funding, and unified standards for green development.
"UOB takes our responsibility to provide and channel capital to facilitate continued investments in sectors that are critical to the energy transition very seriously," Lam said.
Nearly all (99.7%) GBA enterprises plan to incorporate or enhance ESG elements in their operations, with 30% planning an increase and 64% maintaining current levels.
However, obstacles like a lack of experience (77%), cost pressures (67%), and an absence of unified standards (61%) were identified as key challenges.
Business lauds government initiatives
The GBA business community sees Hong Kong as a strong performer in offering green services such as construction technology, climate risk assessment, and green financial services.
Most respondents indicated they would use a variety of Hong Kong's green-related services, including green certification and carbon emission measurement (89%), green financial services (88%), and energy transition programs (86%).
The survey was conducted through an online questionnaire completed by 300 leading enterprises in the 11 GBA cities, supplemented by a series of in-depth interviews.
The study was designed to provide insight into the green development capabilities of Hong Kong and the ESG strategies of GBA enterprises, which are moving toward more sustainable business practices as a sector.