Nature-Related Disclosures Essential Amid Stakeholder Demands in Hong Kong
Urgent Need for Nature-Related Disclosures
As stakeholders in Hong Kong demand action, companies face mounting pressure to disclose the impact of nature and biodiversity on their operations. At the ReThink forum, Patrick Ho Ho-yin from Swire Properties highlighted that by understanding and managing nature-related risks and opportunities, businesses can reallocate funds towards crucial conservation initiatives.
Significance of Nature-Related Financial Disclosures
Ho stated that embracing these disclosures positions Hong Kong as a leader in nature-based finance, potentially attracting more investment for environmental projects. A PwC report reveals that 55% of global GDP, approximately $58 trillion, is exposed to significant nature-related risks, particularly in construction, food and beverage, and agriculture.
Rising Demand for Improved Disclosures
- The International Sustainability Standards Board (ISSB) acknowledges a growing need for transparent disclosures regarding biodiversity and ecosystem services.
- Key ecosystem services include soil formation, food provision, and climate regulation essential for economic well-being.
- ISSB's initiatives on nature-related disclosures signal regulatory change ahead, highlighting the need for businesses to prepare.
Investment Opportunities in Conservation
Noting the staggering HK$500 million required to restore 2,000 hectares of degraded land in Hong Kong, the potential for generating revenue from carbon credits is significant. According to estimates, reforestation could yield annual revenues of HK$6.2 million.
Funding Challenges in Ocean Conservation
- Kate Martin from ADM Capital Foundation pointed out the inadequate budget for ocean conservation, set at HK$87 million this year.
- This funding must increase sixfold to meet global conservation goals of designating 30% of oceans as conservation zones by 2030.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.