Hang Seng reveals new sustainability rating scale

It reflects companies' performance using the ESG maturity model.

Hang Seng Indexes Company announced the 2021 Sustainability Ratings of listed companies in Hong Kong and mainland China. It used a newly updated rating scale that reflects companies' performance with the environmental, social, and governance (ESG) maturity model.

An independent and professional assessment body, Hong Kong Quality Assurance Agency (HKQAA), was appointed by Hang Seng to conduct an annual evaluation of the sustainability performance of listed companies since 2014.

HKQAA launched a new sustainability rating scale and description ranging from AAA (Sustainable) to D (Vulnerable) to define the characteristics of an "ideal" sustainable company that is continuously working to further enhance its ESG performance. 

The recently completed 2021 sustainability performance assessment covered approximately 500 Hong Kong-listed companies and about 1,400 A-shares companies eligible for trading under the Northbound Stock Connect scheme. Hang Seng has used the sustainability ratings of listed companies to provide benchmarks for sustainability investment in companies listed in Hong Kong and mainland China.

Hang Seng has appointed the Hong Kong Quality Assurance Agency to conduct an annual evaluation of the sustainability performance of listed companies since 2014.