Hong Kong Businesses Urged to Embrace Nature-Related Disclosures: The Future of Sustainable Development and Nature-Based Finance

Experts suggest that Hong Kong businesses should ready themselves for disclosures related to nature and biodiversity. They predict that in the foreseeable future, regulatory authorities might question local firms regarding the influence of environment-related risks and opportunities on their business activities.

Patrick Ho Ho-yin, the head of sustainable development at Swire Properties, suggests that Hong Kong businesses can channel more funds into conservation projects if they effectively comprehend and handle risks and opportunities associated with nature.

"Hong Kong has the potential to become a frontrunner in eco-friendly finance by adopting nature-related disclosures, thereby drawing more investments towards environmental initiatives," he proclaimed during the ReThink forum on Friday. He further emphasized that financiers are showing a growing interest in businesses that exhibit good environmental management.

Approximately 55% or US$58 trillion of the world's total GDP and half the market value of 19 key stock exchanges are potentially threatened by significant risks related to nature, as stated in a PwC report from the previous year. The sectors most at risk, as indicated by the World Economic Forum in 2020, include construction, food and beverage, and agriculture.

The International Sustainability Standards Board noted in April that feedback from investors highlighted an increasing and important demand for better disclosure concerning biodiversity, ecosystems and services offered by nature.