In our 2006 report, A Cat and Mouse Game for Investors, of initial public offering (IPO) documents of Asian supply chain companies listing on the Hong Kong Stock Exchange (HKEx) we reported that disclosure of ESG risks was generally at a standstill.  However, in this follow-up report we found evidence of a positive shift in the disclosure landscape.   Chinese corporates, particularly in sectors such as electronics and textiles, are now showing greater willingness to disclose ESG-related issues.  As a result, investors are starting to get access to more direct ESG-related metrics. Prospectuses we reviewed reveal that improvement is not just the result of regulatory pressure, but also of key customers, market development trends and public scandal. Follow-up discussions with company representatives also revealed growing awareness of intellectual property rights and waste recycling management.  A key finding of the report was that this disclosure door will be likely to open even further if investors take the initiative to introduce ESG themes into their discussions with companies.

Our thanks to Sigrid Rausing Trust for sponsoring the project. We have printed hard copies of this report available. If any member would like one or more hard copies to pass around, or if you have any other comments, please feel welcome to contact me direct.