Dr. Gaoguang Zhou sheds lights on green finance and ESG reporting in Asia18 Sep, 2019
Prof. Ed Snape, Dean of the School of Business, welcomed the guests. “Our faculty members have been producing world-class research and generating business and social impact. The aim of the Business Power Lunch is to serve as a platform to engage with the business sector, and to stimulate discussion and new insights for both practice and research.”
Themed “Business sustainability and reporting – how reducing climate risks may benefit your business”, the presentation by Dr. Gaoguang Zhou of the Department of Accountancy and Law was based on his recent co-authored book Business Sustainability in Asia. Dr. Zhou looked into the drivers of sustainability, and examined sustainability reporting in Asia with a focus on China and Hong Kong. The findings suggested that the Chinese government has been leading the development of green finance in Asia. In 2018, some US$42.8 billion green bonds were issued in China.
Dr. Zhou suggested that companies with stronger environmental, social and governance (ESG) investments were more competitive, often leading to higher profitability and dividends, when compared to low ESG-rated companies. They also showed lower systemic risk exposure, evidenced by less volatile earnings and less systematic volatility. Compared to low ESG-rated companies, they also experienced lower betas and reduced costs of capital.
The HKBU Business Power Lunch is a biannual occasion for School of Business scholars to share their latest research insights with senior leaders and business executives. Other research insights from the School of Business are reported here.