Hong Kong fashion sector's ESG adoption jumps to 46%; buyers pay more

Nearly half of shoppers were willing to pay at least a 10% premium for ESG products.

The share of Hong Kong fashion practitioners sourcing or selling environmental, social, and governance (ESG)-related products and services rose to 46% in 2026, from 33% in 2025, according to the Hong Kong Trade Development Council (HKTDC).

The HKTDC ESG Index published on 24 August also found that 92% of fashion practitioners considered ESG essential to the industry, up from 85% in 2025. The share rating ESG as “very important” rose to 23% from 15%.

Amongst exhibitors offering ESG-related products or services, 61% reported additional profit margins of at least 10%. Meanwhile, 47% of buyers sourcing ESG-related products said they were willing to pay a premium of 10% or more.

“The latest findings show sustainability is becoming an increasingly important commercial driver for the fashion industry,” said Alice Tsang, Principal Economist, Global Research Team at HKTDC. “Not only are more companies integrating ESG into their business strategies, but many are also seeing tangible financial benefits.”

Hong Kong’s fashion industry ESG Index rose 2.3 percentage points to 65.5 in 2026. Its Environmental Sub-index rose to 64.3, whilst the Social Sub-index reached 67.0 and the Governance Sub-index rose to 66.1.

The index found that sustainable supply chain platforms were the most valuable digital solution offered by Hong Kong for ESG compliance, cited by 54% of respondents. Artificial intelligence analytics and supplier collaboration tools each received 31%.

For supply chain compliance with ESG reporting requirements, respondents identified transparency and traceability tools as the leading solution at 44%, followed by ESG certification at 40% and ESG audits and risk analysis solutions at 28%.

Amongst Chinese Mainland respondents, 45% rated ESG as “very important” in business decision-making, up 27 percentage points from 2025.

HKTDC Director of Research Bruce Pang said, “Fashion businesses increasingly recognise Hong Kong's unique strengths and solutions, which positions the city as an ideal platform for companies looking to identify sustainable business opportunities, forge international partnerships and navigate evolving global ESG requirements.”