Governance

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Our objectives

To maintain and uphold high standards of corporate governance by adopting ESG governance policy and risk management policy to be in line with international and local corporate governance best practices for achieving sustainable governance.

Key figures

Received the ‘Master-Insight ESG Award’ from Master Insight in 2022

First local bank committed to setting science-based targets (SBT)

Hang Seng Indexes Company received ‘Best ESG Index Provider – Hong Kong’ and ‘Most Innovative Index – Hong Kong’ awards at Asia Asset Management’s Best of the Best Awards 2022

Hang Seng Indexes Company received the ‘Best ESG Solution’ award at the SRP Asia Pacific Awards 2022

Highlights

Our ESG governance

Our ESG governance

We have established a high-level ESG Steering Committee, chaired by our Executive Director and Chief Executive, and reportings to the Executive Committee and the Board. The Steering Committee is supported by four Working Groups (ESG Strategy, Environmental, Corporate Social Responsibility and ESG Disclosure), each led by a member of the Bank’s Executive Committee. We have also set up a dedicated ESG Department to manage ESG issues from a bank-wide strategic perspective.

For details of our corporate governance, please visit our corporate governance page.

Board Statement

The Bank places great importance on Environmental, Social and Governance (ESG) matters and this importance continues to grow. The Board takes overall responsibility for ESG matters and their integration into the Bank’s strategies. It guides the management and monitoring of ESG matters that have been identified as relevant to the Bank by the Executive Committee on the recommendation of the ESG Steering Committee.

In 2021, the Bank also implemented annual ESG key performance indicators (KPIs) and action plans that establish clear accountabilities for different business units and functions while encouraging Bank-wide action to embed ESG as a part of our corporate culture. To provide effective guidance and oversight, the Board of Directors set the Bank’s ESG strategies and KPIs, and proactively monitored and oversaw its ESG performance through updates from the management team at least twice a year.

Among all ESG-related risks, the Bank considers those related to climate change to be a top and emerging risk. The acceleration of actions to strengthen our climate risk management capabilities in 2021 include formalising our climate risk management structure; organising climate risk training for the Board including identifying risks and opportunities associated with climate change and maintaining awareness about international agreements and national policies on climate change; and incorporating environmental considerations, such as climate risk, in the Bank’s risk appetite for proactive monitoring and oversight.

Mitigating climate risks requires action along our entire value chain. To assist our customers transition to a low-carbon economy and achieve carbon neutrality, we are continuing to expand the diversity and range of our sustainable finance and investment product offerings to meet the different needs of customers. 

Progress update

2nd quarter of 2022:

  • Hang Seng Indexes Company launched the HSCEI ESG Enhanced Index in June, further enriching its suite of products that fulfil the needs of investors who are interested in ESG-focused and sustainable investment strategies for mainland China companies
  • Hang Seng Indexes Company joined hands with Wilshire to launch the Hang Seng Climate Change 1.5°C Target Index in May, to provide a new benchmark for investors who are interested in integrating climate considerations into their investment portfolios



1st quarter of 2022:

  • We published our Climate Strategy framework in March 2022
  • We updated our 2021 Awards, Recognitions & Commitments at our website in March 2022

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