Hang Seng Indexes (HSI) has announced the 2021 sustainability ratings of listed companies in Hong Kong and mainland China, which use a newly updated rating scale that reflects a company’s performance along an ESG maturity model.

The Hong Kong Quality Assurance Agency (HKQAA), an independent and professional assessment body appointed by HSI, has conducted an annual evaluation of the sustainability performance of listed companies since 2014. The recently completed 2021 sustainability performance assessment covered approximately 500 Hong Kong-listed and 1,400 A-share companies that are eligible for trading under the Northbound Stock Connect scheme.

The sustainability ratings of listed companies have been used in the constituent selection of the ESG indexes launched by HSI to provide benchmarks for sustainability investment in companies listed in Hong Kong and mainland China.

The rising global interest in environmental, social and governance (ESG) and sustainability-themed investing is also being reflected in the Hong Kong market. To enable investors and companies to better understand the sustainability performance of listed companies, a new sustainability rating scale and description, ranging from AAA (Sustainable) to D (Vulnerable), has been launched by HKQAA with the aim of defining the characteristics of an ‘ideal’ sustainable company that is continuously working to further enhance its ESG performance.