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The authors of the study compared the environmental attitudes of SMEs and larger companies and analyzed their key drivers and barriers to adopting voluntary environmental initiatives. Inadequate government policy and support, a low degree of environmental awareness in Hong Kong's society and a corporate culture that is very much focused on short-term monetary benefits were identified as key factors contributing to the poor development of corporate environmental management among Hong Kong companies.
Small and medium-sized enterprises (SMEs) are particularly difficult to involve in environmental initiatives. "Almost 80% of the SMEs participating in our study stated that they would only consider engaging in environmental activities if they faced legal obligations to do so", explains Dr. Sonja Studer, senior project officer at CUPEM. Companies with more than 200 employees claimed a lack of pressure from government to be the main barrier that prevented them from engaging in activities such as environmental reporting, introducing environmental management systems or supporting local environmental initiatives. But they also thought there were insufficient incentives to be environmentally proactive.
The research suggests that Hong Kong cannot rely on voluntary agreements with industry to improve its environmental performance, and that there is no alternative to increased regulation.
The researchers recommend stronger leadership by government and business associations in order to improve the environmental performance of Hong Kong companies. "Chambers and business associations are engaging with SMEs to a certain degree, but to date their approach has been piecemeal. They offer courses and industry briefings to the few companies that are already engaged, but they do little to engage with the issues at a policy level", says Dr. Richard Welford, principal investigator of the project. "There is a need for a more systematic, government-backed approach."
Based on their findings, the research team arrives at four basic recommendations for future environmental policies:
• Tougher environmental legislation while maintaining the current high level of implementation and enforcement.
• Better consideration of SMEs by regulators to avoid them slipping through the regulatory framework. This implies a fuller engagement of regulators with the SME sector, not only by means of providing information and support.
• A bigger role for business associations such as chambers of commerce and the Business Environment Council in building relationships between business and government.
• Raised efforts to improve environmental education; and specifically the education, training and other support targeted at SME owners and managers. Emphasis should be put on demonstrating them how good environmental governance can lead to competitive advantage.
SMEs form over 98% of business establishments in Hong Kong. Only if their unique characteristics and needs are taken into account will Hong Kong manage to reach an environmental standard that is in line with its claim to be a World City.
For further information or a copy of the full report please contact:
Dr. Richard Welford
The Centre of Urban Planning and Environmental Management, The University of Hong Kong
Tel: 2857 8645 (mobile: 9630 8290)
Fax: 2559 0468
e-mail： rwelford@hkucc.hku.hk
Hong Kong companies fail to respond to environmental challenge
23 Nov 2005
Hong Kong companies are still largely disinterested in environmental issues, a recent Hong Kong University study shows. The survey, conducted by the University's Centre of Urban Planning and Environmental Management (CUPEM), found that the overwhelming majority of businesses in Hong Kong are reluctant to engage in environmental initiatives that exceed mere regulatory compliance. Moreover, government and business associations are failing to provide meaningful leadership for the private sector, it concludes.
The authors of the study compared the environmental attitudes of SMEs and larger companies and analyzed their key drivers and barriers to adopting voluntary environmental initiatives. Inadequate government policy and support, a low degree of environmental awareness in Hong Kong's society and a corporate culture that is very much focused on short-term monetary benefits were identified as key factors contributing to the poor development of corporate environmental management among Hong Kong companies.
Small and medium-sized enterprises (SMEs) are particularly difficult to involve in environmental initiatives. "Almost 80% of the SMEs participating in our study stated that they would only consider engaging in environmental activities if they faced legal obligations to do so", explains Dr. Sonja Studer, senior project officer at CUPEM. Companies with more than 200 employees claimed a lack of pressure from government to be the main barrier that prevented them from engaging in activities such as environmental reporting, introducing environmental management systems or supporting local environmental initiatives. But they also thought there were insufficient incentives to be environmentally proactive.
The research suggests that Hong Kong cannot rely on voluntary agreements with industry to improve its environmental performance, and that there is no alternative to increased regulation.
The researchers recommend stronger leadership by government and business associations in order to improve the environmental performance of Hong Kong companies. "Chambers and business associations are engaging with SMEs to a certain degree, but to date their approach has been piecemeal. They offer courses and industry briefings to the few companies that are already engaged, but they do little to engage with the issues at a policy level", says Dr. Richard Welford, principal investigator of the project. "There is a need for a more systematic, government-backed approach."
Based on their findings, the research team arrives at four basic recommendations for future environmental policies:
• Tougher environmental legislation while maintaining the current high level of implementation and enforcement.
• Better consideration of SMEs by regulators to avoid them slipping through the regulatory framework. This implies a fuller engagement of regulators with the SME sector, not only by means of providing information and support.
• A bigger role for business associations such as chambers of commerce and the Business Environment Council in building relationships between business and government.
• Raised efforts to improve environmental education; and specifically the education, training and other support targeted at SME owners and managers. Emphasis should be put on demonstrating them how good environmental governance can lead to competitive advantage.
SMEs form over 98% of business establishments in Hong Kong. Only if their unique characteristics and needs are taken into account will Hong Kong manage to reach an environmental standard that is in line with its claim to be a World City.
For further information or a copy of the full report please contact:
Dr. Richard Welford
The Centre of Urban Planning and Environmental Management, The University of Hong Kong
Tel: 2857 8645 (mobile: 9630 8290)
Fax: 2559 0468
e-mail： rwelford@hkucc.hku.hk
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