12 July 2023
The National University of Singapore (NUS) and PricewaterhouseCoopers (PwC) have jointly released the Sustainability Counts II report, emphasizing Fosun International’s exceptional standards in ESG disclosure.
National University of Singapore (NUS) Centre for Governance and Sustainability (CGS) and PricewaterhouseCoopers (PwC) Singapore have released a comprehensive report titled “Sustainability Counts II.” The report, based on the principles of the Global Reporting Initiative (GRI) and the Task Force on Climate-Related Financial Disclosures (TCFD), focuses on analyzing the sustainability reporting attributes of the top 50-listed companies across 14 countries and regions in the Asia Pacific. The study encompasses 700 listed companies spanning 11 industries, including Fosun International Limited, one of the Hong Kong-listed companies under examination.
The report highlights the urgent need for companies in the Asia Pacific region to transform sustainability strategies into tangible actions. It provides valuable insights into sustainability reporting requirements at both global and regional levels, shedding light on the progress made so far.
One of the key findings from the study is the importance of external assurance in building trust between companies and stakeholders. Unfortunately, sustainability external assurance in the Asia Pacific region remains poor, with only 49% of companies studied having undergone external assurance, significantly lower than the global average.
The GRI framework continues to be the dominant sustainability reporting standard in the Asia Pacific, adopted by 81% of the companies analyzed. With the upcoming implementation of the International Sustainability Standards Board (ISSB) in June 2023, the focus now shifts to how companies will embrace the new standard for their sustainability reporting. Additionally, the use of the TCFD framework has increased by 21%, with 57% of companies employing it. Notably, 88% of companies disclosed climate-related risks and opportunities, and 89% conducted climate scenario analysis.
While 80% of companies studied disclose their emissions, there is a need for greater transparency and accuracy in measuring Scope 3 emissions. While the measurement of Scope 1 and 2 emissions has matured, companies must make additional efforts to improve the measurement of Scope 3 emissions.
The report specifically recognizes Fosun International for its active response to ESG (environmental, social, and governance) disclosure challenges and its commitment to promoting sustainable development and corporate responsibility. Fosun International has demonstrated its dedication to addressing climate change by issuing its first TCFD Report this year. The report sets forth Fosun’s “Carbon Neutrality Goal” of peaking carbon emissions by 2028 and achieving carbon neutrality by 2050. The company has established a Carbon Neutrality Committee and a Carbon Neutrality Working Group to ensure the effective implementation and enforcement of carbon-neutral management across the group. Fosun’s commitment to climate action is further evidenced by its efforts to identify climate-related risks and opportunities, improve transparency and accuracy in reporting greenhouse gas emissions, and actively engage with stakeholders.
Fosun International has taken additional measures to strengthen trust and confidence in its sustainability reporting. It has obtained external assurance from an independent organization, following the AA1000 Assurance Standard (AA1000AS), to provide stakeholders with audited and reliable sustainability information. The company has also established comprehensive mechanisms for ESG management, including an ESG Board Committee, an ESG Executive Committee, and an ESG Management Committee, to ensure the integration of ESG into its operations and decision-making processes. Fosun has made ESG performance a factor in its executive directors’ performance assessments and remuneration assessments, aligning incentives with sustainability goals.
Angel Sze, Fosun Global Partner and Company Secretary & Head of the ESG Management Committee, emphasized the importance of prioritizing ESG and engaging stakeholders actively. Fosun International has actively worked to incorporate best practices, foster open communication channels, and implement sustainability-related initiatives to enhance its ESG capabilities. The company acknowledges the challenges posed by different reporting requirements across various countries and regions and has invested in upskilling employees to stay updated with the latest sustainability reporting developments. Fosun has also engaged in global exchanges with counterparts in Europe and the UK to stay informed about global ESG reporting trends and foster cross-sharing opportunities.
To meet stakeholders’ demand for transparent and comparable reporting, Fosun International has published its ESG Report in accordance with the Environmental, Social, and Governance Reporting Guide of the Hong Kong Stock Exchange. The report follows the GRI Sustainability Reporting Standards and voluntarily discloses climate-related financial risks based on the TCFD recommendations. Moreover, Fosun has aligned its ESG strategies with the United Nations Global Compact and incorporated the UN Sustainable Development Goals (SDGs) into its sustainable development and management framework. The ESG Report has undergone third-party verification by SGS, enhancing stakeholder confidence in the disclosed information.
Fosun International’s outstanding ESG performance has gained recognition in the international market. It has received an AA MSCI ESG Rating, making it the only conglomerate in Greater China with such a rating. Fosun has been included in various sustainability indices, such as the MSCI CHINA ESG LEADERS 10-40 Index, Hang Seng Sustainability Index, Hang Seng ESG 50 Index, and FTSE4Good Index Series. The company’s S&P CSA ESG score has outperformed 91% of its global peers, and it has been acknowledged as an “Industry Mover” by S&P Global in its Sustainability Yearbook 2023 (China Edition).
Fosun International’s commitment to ESG and its remarkable performance have positioned the company as a leader in ESG disclosure, sustainable development, and corporate responsibility. With its continuous efforts to drive carbon neutrality and improve sustainability reporting, Fosun International sets a noteworthy example for other companies across the Asia Pacific region.