PRESS RELEASE

Hong Kong Logistics Association Pioneers 1st ESG Supply Chain
Rating Assessment and Calls for Sustainable Logistics Industry

[Hong Kong, April 26, 2024] – The Hong Kong Logistics Association (HKLA) proudly announces the successful launch of the ESG Supply Chain Management Program (ESG SCM). This groundbreaking program integrates environmental, social, and governance (ESG) principles into logistics operations, promoting sustainable development and low-carbon practices in the industry. The launch ceremony, held on April 25, brought together logistics industry experts, representatives from small and medium-sized enterprises (SMEs), industry associations, and supply chain management companies, marking a significant milestone for the logistics sector.

As one of Hong Kong’s key economic pillars, the logistics industry plays a crucial role in driving sustainable development, the national 2030/2060 dual carbon goals, and Hong Kong’s 2050 carbon neutrality target. HKLA is committed to leading the logistics industry in aligning with global ESG standards. The ESG SCM program will evaluate the ESG performance of logistics operations and will provide professional training (ESG SCM Professional Accreditation) to foster ESG talent within the sector. HKLA has established a dedicated “ESG Rating Agent” task force, to assess the ESG performance of both direct and indirect logistics operations. The framework helps SMEs enhance their management and governance, identify baselines, and areas for improvement.

The ESG SCM program has received strong support from the Transport and Logistics Bureau and is implemented under the Logistics Promotion Funding Scheme (LPFS) of the Maritime and Aviation Training Fund (MATF). HKLA has also established an ESG Board consisting of industry professionals from various fields. The esteemed board members include Ir. Elsa Yuen, President of HKLA; Mr. Simon Ng, CEO of Business Environment Council; Mr. Chua Hoi wai, JP, Chief Executive of The Hong Kong Council of Social Service; Ir. Edmund Leung, SBS, OBE, JP, Deputy Chairman of The Hong Kong Institute of Directors; Dr. Abril Choy, JSD, FHKIoD, Honourable Legal Advisor of HKLA; and Prof. Xiaowen Fu, Head of Department of Industrial and Systems Engineering at The Hong Kong Polytechnic University.

Hon. Frankie Yick Chi-ming, GBS, JP, Legislative Council Member (Transport Constituency), graced the event as the guest of honour. Together with President Yuen and the ESG Board members, they conducted a digitalized launch with the theme “Charging for a Green Future.”

“The launch of the ESG SCM program signifies Hong Kong’s logistics industry’s commitment to sustainability. By leading industry practices, we ensure that Hong Kong maintains its leading position globally. We look forward to assisting SMEs in improving their ESG performance and shaping a greener future for the logistics industry through the ESG SCM program.”, said Ir. Elsa Yuen, President of HKLA, in highlighting the importance of integrating ESG practices and low-carbon operations into the logistics industry’s sustainable development in her welcoming speech.

The ESG Board panel discussion delved into the importance and impact of ESG integration in the logistics industry. Mr. Simon Ng, CEO of the Business Environment Council, emphasized that ESG is not only a part of corporate responsibility but also a key driver of competitiveness and sustainability. The event also featured sharing sessions by Hong Kong Air Cargo Terminals Limited (HACTL) and Starbucks Coffee Asia Pacific, where they showcased industry best practices, processes, and challenges in implementing ESG principles in their supply chains.

Moving forward, HKLA will continue collaborating closely with stakeholders in the logistics industry, providing training and guidance to participating companies through the ESG SCM program. The aim is to help develop and implement supply chain management strategies aligned with ESG principles. Additionally, the program will assist companies in assessing their own ESG performance and provide recommendations based on the outcomes of the ESG evaluations.

For more information about the ESG SCM program, please visit the official website.

About the ESG Supply Chain Management Program (ESG SCM)
Environment, Social and Governance (ESG) is a company effort to keep operations sustainable and carry out social responsibilities. Hong Kong Logistics Association (HKLA) attempts to bring ESG to the logistics industry in particular by targeting small and medium enterprises (SMEs) so that Hong Kong’s logistics enterprises can engage in the global ESG trend at this early stage, keeping Hong Kong logistics industry performing as an international logistics hub. This program will establish the first dedicated “ESG Rating Agent” task force to evaluate the ESG performance of direct and indirect logistics operations; and will promote capacity building through “ESG SCM Professional Accreditation” courses and training resources.

This evaluation will assist the management/governance of companies to identify the baseline and the areas for improvement with respect to ESG. The assessment methodology will be continuously improved in response to evolving global market demands, rather than being based on static standards specific to a particular city or time. The evaluation questionnaire covers ESG in different levels, namely the policies and implementation. The evaluation results are based on (a) comparisons with peer groups in the assessment pool, (b) benchmarks in five specific areas, and (c) insights and foresight into strategic directions. Companies/organizations can formulate and advance their progress in a sustainable manner through this process.

About the Hong Kong Logistics Association (HKLA)
The Hong Kong Logistics Association (HKLA) is the first local professional logistics association in Hong Kong. Established in 1996 as a non-government organization (NGO), HKLA has been at the forefront of promoting logistics and supply chain management in the city. The association’s membership comprises a diverse range of industry practitioners, including third-party logistics service providers, trading firms, manufacturers, and scholars involved in activities such as warehousing, freight transportation and forwarding, procurement, materials management, and IT solution services.

For media inquiries, please contact Christie Lai via esg@hkla.org.hk or +852 6324 6900.