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ESG consulting has emerged as an essential tool for helping companies seeking to align their operations with principles beyond just profitability. This burgeoning market addresses environmental impact, social responsibility, and governance structures. |
In Hong Kong, due to stricter reporting requirements for listed companies and rising investor appreciation for green/sustainable finance, companies are placing more emphasis on ESG. Research firm Verdantix predicts that the market size of ESG consulting services in Hong Kong will increase from HK$198.9 million in 2023 to HK$288.9 million in 2027, at a CAGR of 9.8%.
Three companies on our radar are strong contenders to benefit from these trends. Allied Sustainability and Environmental Consultants Group Limited (“AEC Group”, HKSE stock code: 8320) is the first sustainability and environmental consultancy service provider listed on the Hong Kong Stock Exchange. It provides a comprehensive range of ESG consulting services, including ESG compliance and due diligence for local and international reporting requirements and ESG enhancement services for global sustainability efforts. Driven by China’s Belt and Road initiative, AEC Group has expanded into overseas markets, establishing new business ties in the Middle East (Dubai) and opening a new office in Southeast Asia.
| ● Financial Performance: For the year ending March 31, 2024, AEC Group reported an increase in revenue to approximately HK$52.0 million, up from HK$46.7 million the previous year. This growth was driven by increased contracts in green building certification consultancy and acoustics, noise, and vibration control consultancy. ● Sustainability Initiatives: The company launched the Sustainature platform, an online ESG management tool, which has been extended to the ASEAN market. Additionally, AEC Group is participating in carbon trading through the Core Climate platform initiated by Hong Kong Exchanges and Clearing Limited. |
ROMA Green Finance (Nasdaq: ROMA) has strong competencies in providing comprehensive ESG/sustainability services tailored to client needs, maintaining high client retention rates. Roma Green Finance successfully completed its IPO on January 9, 2024, raising approximately $12.3 million. This move marked a significant step in enhancing its market presence and financial stability.
For the six months ended September 30, 2023, recurring clients accounted for 87% of the company's revenue, compared to 74% in the same period of the previous year.
It has also a growing and clients in a diverse spectrum of industry sectors including financial services, property development and management manufacturing, and natural resources. It has served over 170 clients since it was established in 2018.
ROMA has created significant entry barriers against new industry players by establishing a strong reputation and brand awareness. It boasts experienced staff with deep industry expertise. ROMA engage in the full lifecycle of ESG reporting and investment enabling it to acquire and attain customers with providing integrated solutions that meet higher regulatory standards and customer requirements.
ROMA’s expertise is a natural extension from that of its Hong Kong-listed associate Roma (meta) Group Limited (“Roma Meta”, HKSE stock code: 8072), which provides the following services:
| ● Valuation: The company specializes in business and intangible assets valuation, property valuation, machinery and equipment valuation, and work of art valuation. ● Advisory: Roma offers corporate advisory, risk advisory, and natural resources consultation services. ● Financial: It provides financial instruments valuation and purchase price allocation. ● ESG Reporting: The company is involved in environmental, social, and governance (ESG) reporting and credit and risk evaluation |
These complete a holistic offering of sustainability consulting services aimed at helping its 100-strong enterprise clientele to achieve sustaining profitability while attracting investors looking for high-standard social responsibilities in their invested assets. The company received the Gold Prize Award for Asia’s Best Sustainability Report (SME) at the ASRA 2023 in Singapore, highlighting its commitment to sustainability and excellence in ESG practices.
The company reported a revenue of HK$63.4 million in FY2024, which represents a decline of 6.4% compared to the previous fiscal year. Roma (meta) Group recorded a net loss of HK$41.0 million, marking a 40% increase in losses from the previous year.
With growing interest in socially responsible investing, AEC Group, ROMA Green Finance and Roma Meta are well-positioned to equip clients to embrace this significant trend.
