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More than ever, the best companies are no longer purely measured by the amount of profits they generate. Increasingly, the focus is shifting towards sustainability, specifically environmental, social and governance (ESG) issues, and how companies can play a much bigger role not just for the environment but also the betterment of society. The implementation of a more socially responsive strategy to identify ESG opportunities and mitigate risks are helping companies make serious decisions about how to improve environmental and social outcomes. 

One such company is HKBN (Hong Kong Broadband Network), a local Hong Kong start-up and now a Hong Kong-listed telecom and technology company best known for broadband, mobile, entertainment and its complete spectrum of enterprise solutions. HKBN has led the way by setting up an ESG committee and programmes through which it is committed to talent engagement, technology empowerment and business transformation. 

“ESG factors complements a company’s operational, financial and revenue to drive shareholder value and help enterprise customers and suppliers develop sustainable businesses of their own,” says NiQ Lai, HKBN’s Co-Owner and Group CEO. “On the other front, the world is going digital. As a socially responsible tech company, we’re also working on technology for good programmes that tackle the diverse needs of stakeholders like our customers, suppliers, NGOs and the socially disadvantaged from our communities.”  

At the corporate level, HKBN is using its position as a large-scale technology provider as the springboard to do more in ESG. “In Hong Kong, we serve 1-in-3 households and 1-in-2 active companies. This massive reach means we can leverage our strengths in digital technology and enable businesses, as well as NGOs and community groups, to achieve better results in their own ESG performance.” In September, the company established a board-level ESG committee – responsible for overseeing its long-term sustainability strategies, initiatives and goals – making HKBN one of the first few Hong Kong-listed companies to do so. 

Talents are essential 

Lai believes driving cultural change is the first step in strategising ESG from within. “ESG visions, policies and measures should be based on people's needs. They should start from the standpoint of what every individual values. Every “Talent” (HKBN doesn’t have employees, only “Talents”), for example, has a role to play in our purpose to ‘make our home a better place to live’.” 

To attract and retain the most passionate Talents, HKBN has a company Co-Ownership scheme in place. This allows Talents to invest in the company, motivating them with skin-in-the-game interest alignment to work harder and reap the rewards of future success. 

Interestingly, HKBN has replicated this approach to incentivise Talent-involvement in ESG. The company recently began introducing plans which motivate Talents to integrate ESG into their business proposals.

Driving digital inclusion 

With its capabilities in technology, the company is promoting the use of technology in the wider community to improve digital access, provide more learning opportunities, and to enhance competitiveness. For example, the company operates the HKBN Talent CSI Fund, an independently run charity mainly funded by its dividends, to create opportunities that help youths improve their digital skills, entrepreneurship and employability. 

Oftentimes, it can be difficult for SMEs to create a digital transformation that matches the scale of larger companies. Generally speaking, SMEs lack the resources needed or might not understand how it can benefit their businesses. At HKBN, take the ESG best practices that we gain from serving large multinational companies and make it affordable and practical for local Hong Kong small companies.

Similarly, HKBN provides free consulting services to NGOs and social enterprises that lack IT knowledge and resources. The consulting team works with them to understand their operational challenges, give suggestions, and offer IT solutions they can afford, freeing them to focus on their core mission of serving their communities. 

Cybersecurity matters

Telecom companies like HKBN have a responsibility to take data privacy and security very seriously – both to maintain the trust of customers and the integrity of their operations. As a tech leader with one of Hong Kong’s strongest teams of information security experts, HKBN supplements its data protection systems and measures with a company-wide culture fixated on privacy and security. “Our team is not only keeping HKBN safe from all forms of cyberthreats, but we’re doing the same for our customer base. In terms of managing long-term sustainability, businesses are beginning to commit greater resources towards the protection of their data and IP assets. For the community, we organise information security seminars for groups like social profit organisations and individuals to enhance their network and data security knowledge.” 

Bringing positive changes to stakeholders

HKBN is always looking for new, progressive opportunities to partner with like-minded companies, says Lai. The company has also introduced a supplier management framework that uses a consistent, systematic and analytical approach to evaluate, track and improve the performance of its suppliers. It has also incorporated ESG requirements into the procurement process to ensure that factors like environmental sustainability, ethics, labour rights, and employee health and safety are reinforced at every point of the supply chain, he adds.

With these principles guiding the business, HKBN has outperformed its industry peers and received excellent ratings in many ESG indicators. For example, the company has an AAA rating in the 2022 MSCI Environmental, Social and Governance Rating. It has also been a member of the Hang Seng Corporate Sustainability Benchmark Index since 2016 and has been awarded an AA rating for three consecutive years (2020, 2021, and 2022). An MSCI ESG Rating is designed to measure a company’s resilience to long-term, industry material ESG risks. HKBN’s consistent top rating acknowledges the firm’s commitment to and implementation of its ESG goals. 

“Our goal is to become an ethical and sustainable ICT company that benefits humanity, the planet, and our local communities. While we explore new business opportunities, we will never neglect responsibilities to reduce our carbon footprint, take care of our Talents, and to make society better by leveraging our expertise in digital technologies.”  

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