2022年9月23日星期五

The 13th Biennial Corporate Governance Conference (CGC) 2022

The Hong Kong Chartered Governance Institute (HKCGI) (香港公司治理公會) organized the 13th Biennial Corporate Governance Conference (CGC) on 23rd Sep 2022. The theme is “Repurposing in Changing Times – the Company, Governance and the Governance Professional”. FHKI has free online ticket for advisors and members in Compliance Committee. I was one of them to attend the online meeting. 


In the beginning, Mrs. April Chan (Past President and Chairman, Technical Consultation Panel, HKCGI) gave welcoming address. She surveyed participants’ preference and found that 50% like hybrid mode (Physical and Online) conference arrangement.


Then Mr. Ernest Lee (President, HKCGI; Technical Partner, Deloitte, China) gave welcoming remark. He introduced conference aim and topics.


The guest of honour Mr. Nicolas Aguzin (CEO, Hong Kong Exchanges and Clearing Limited) gave a speech and he said ESG journey in good corporate governance and became corporate DNA.


Session One: Tackling Climate Change

The first speaker in session one was Ms. Tereasa Ko (Senior Partner, Hong Kong and China Chairman, Freshfields Bruckhaus Deringer; Co-Vice Chair, IFRS Foundation) and her topic named “The pressing issue of our times – climate change and harmonizing reporting standards”. She introduced sustainability reporting and ISSB standard for developing global baseline.  Finally, she concluded three key points.

i)         ESG is not just paper work. It needs implementing in each company and integrated into operation.

ii)       No longer accepted just claimed sustainability (No lip service).

iii)      Following the work of ISSB standards which will be accepted by HKEX.


The second speaker was Mr. David Simonds (Chief Strategy, Sustainability and Governance Officer, CLP Holdings Ltd) and his presentation entitled “Climate change governance - challenging yet rewarding”.  Firstly, he discussed about consumer changing to stand up for ESG.


Lastly, Mr. Simonds briefed CLP governance framework that including Sustainability Committee in Board level and establishing Sustainability Executive Committee in management level. For working level, they had department, group function and business unit, as well as Group sustainability forum.


Before end of session one, panel discussion was performed. The chairlady Ms. Gillian Meller surveyed participants and obtained following response.

-          94% participants (141) agreed that Hong Kong company directors need to consider ESG matters to properly discharge their fiduciary and statutory duties.

-          85% agreed that organizations should consider the risks (and opportunities) posed by climate change and allocate resources to address these.

-          61% said their company have a strategy to decarbonize their business.


Session Two: Harnessing Technology

The first speaker in session two was Mr. Adam Stuckert (Group Chief Digital Officer, Tricor Group) and his topic entitled “Harnessing technological advances”. In the beginning, he showed us a survey that 97% feedback agreed pandemic accelerated digital transformation.  Then he discussed to develop digital experiences.


Finally, Mr. Adam Stuckert concluded in three key points. The first point is pace of change that increasing the change and adopt the digital technology. The second point is customer focus especially their digital experience. The third point is foundations including security of data and system.


The second speaker in this session was Mr. Kok Tin Gan (Partner, PwC Hong Kong) and his topic named “Managing technology related risks”. He firstly pointed out 50% of CEOs concerned about cyber risks. Threat actors continue to innovate at unprecedented pace and scale.


Mr. Kok Tin Gan also added Hong Kong organizations should be aware of the increased sophistication of cyber threats because of the accelerated remote work practices due to COVID-19. Then he introduced a robust cyber governance structure.


Session two panel discussion also performed some survey and the result summarized as follows.

-          86% of participants think the pace of technology change is increasing in 2022 after the COVID-19 pandemic.

-          Bell shape was observed about confident that your organization is sufficiently managing and mitigating cyber risks. Assumption: C-suites and board members should set their company’s culture and tone for brand and reputation protection via a cybersecurity framework.

-          57% response that their organization have a Data Protection Officer (or similar role).

-          78% didn’t agree AI would replace human decision-making.

-          67% agreed that there would be a need for a board of directors with the onset of blockchain-based corporate governance.


Session Three: Welcoming Diversity and Inclusion

The first speaker in session three was Mr Nicholas Allen (Chairman and Independent Non-Executive Director, Link Asset Management Ltd) and his presentation entitled “Diversity and inclusion – need to be real and now”. In the beginning, Mr. Allen discussed about individuals to make the sacrifices necessary for the earth and the role of corporate on carbon offset.


Then he proposed three rules including diversity of board members, educating and developing our workforces, as well as, walk the talk culture. Lastly, Mr. Nicholas Allen discussed the right people in place through the four steps and they were corporate intolerance for certain behavior, green leases, genuine education and realistic views.


The second speaker was Ms Bonnie Y Chan (Head of Listing, Hong Kong Exchanges and Clearing Limited) and her topic was “A regulatory concern – and achieving practical regulations”. Ms. Chan firstly briefed their milestone of diversity policy from 2012 to 2022. Then she introduced new rules on diversity.


Finally, she mentioned to build an inclusive corporate culture. HKEX believe “Diversity, as one of the five core values at HKEX, is a critical component of business success, long term sustainability and that it is crucial for societal resiliency and prosperity. We are committed to the vocal advocacy of diversity in all that we do.”


The third speaker was Mr. Nicholas Chilton (Head of Board Advisory, South Pacific, Nasdaq) and his topic named “Diversity Equity & Inclusion an International Overview”. In the beginning of the talk, he discussed some key positive and negative trends.


Then Mr. Chilton discussed some statistics about women on boards and there were separated into hard and soft mandate as well as no mandate in different countries in the world. He finally concluded that culture is key to defining diversity as material to the organization.


Session Three Panel Discussion was performed afterwards.


During the discussing, Ms Edith Shih introduced the board matrix to exam the corporate’s board diversity.


Then they discussed some survey results from participants and showed as follows.

-          44% under active consideration and 38% not need because they had already met the new HKEX requirement for independence and diversity.

-          56% participants voted less than 16% women in their board.

-          52% agreed that it is important for a board to be diverse in both gender and race.

-          67% selected diversity of socioeconomic background aside from gender.

-          53% believed by regulation/laws to incentivize good behaviors towards temperature rise within 1.5 degree Celsius.

Session Four: Enhancing Hong Kong’s competitive advantage

Prof. Frederick Ma Si-hang GBS JP (Chairman, FWD Group Holdings Ltd) was session chair and introduced speakers in the session.


The first speaker was Mr Joseph H L Chan JP (Under Secretary for Financial Services and the Treasury, The HKSAR Government) and his presentation topic named “The positioning and development strategies of Hong Kong as an International Financial Centre”. Mr. Chan briefed Hong Kong’s strengths in four dimensions to be international financial centre.


Moreover, we are leading in Asia across capital markets, insurance business, and asset & wealth management business said by Mr. Joseph Chan. Lastly, he introduced five-pronged approach for FinTech development in Hong Kong.


The second speaker was Mr Amar Gill (Managing Director, Head of APAC Investment Stewardship, BlackRock) and his topic entitled “Hong Kong’s governance leadership - ESG and beyond”. In the beginning, Mr. Gill overviewed global sustainable fund industry and discussed Task Force on Climate-related Financial Disclosures (TCFD) recommendations.


At the end, Mr. Amar Gill suggested ten recommendations for Hong Kong to be a true International Financial Centre.


Session Four – Panel Discussion


Group photo of the session


Corporate Governance in Conversation: Repurposing company reporting

Mr Peter Greenwood (MA FCG HKFCG) was session chair and introduced Prof. Mervyn King.


Prof. Mervyn King SC (Chairman Emeritus, The International Integrated Reporting Council (IIRC)) was the last speaker in the conference. He discussed the major changes in the governance and its impacts.

At the end, Mrs. April Chan (Past President and Chairman, Technical Consultation Panel, HKCGI) gave closing remark.

Reference:

HKCGI - https://www.hkcgi.org.hk/

FHKI – https://www.industryhk.org/en/

2022年9月16日星期五

The 7th World Summit of Chinese Quality (Onsite & Online)

 The 7th World Summit of Chinese Quality (全球華人品質峰會) was organized by Chinese Society for Quality (CSQ), National Quemoy University (金門大學) and pre-World Alliance for Chinese Quality (pre-WACQ - 全球華人品質聯盟()) on 26th Nov 2021. The theme was Environmental, Social, Governance and Chinese Culture”「ESG與中華文化」. The summit was held onsite and online in Kin Men (金門). Minda and I took a photo in front of the screen that we arranged onsite in CityU to attend the summit.


I captured participants group photo in the summit for memory.


In the beginning of the summit, Mr. Lu Ruiyan (Chairman, CSQ) (盧瑞彥先生 - 臺灣廣運集團副董事長) gave welcoming speech and he explained the relation among environmental, social and governance (ESG) and Chinese culture. Finally, he said we need to exceed customer expectation and sustainable development with the earth 「超越顧客期待 與地球永續」.


Mr. Lee - 李增財 (金門縣政府 副縣長) gave welcoming speech to all participants and introduced background of Kin Men (金門).


The representative of National Quemoy University (NQU) gave welcoming speech and he briefed that NQU established in 1997. Then he mentioned some Chinese cultures in Kin Men (金門) and expected all of participants would visit here after pandemic.


World Alliance for Chinese Quality member representatives’ speech section:
Firstly, Mr. Jia fuxing (Chairman, CAQ) (賈福興 - 中國質量協會會長) gave a speech and reminded Three Treasures of Kinmen: Sorghum Wine, Tribute Candy, Steel Knife (金門三寶:高梁酒、貢糖、鋼刀). Then he introduced CAQ activities related to ESG and establishing ESG system standard.


Then Mr. Johnson Tan Swan San (Chairman, SQI) (陳川昌 - 新加坡質量學院主席) gave a speech and he remembered joining the 3th WSCQ in Singapore and sharing quality management. He expected we continued to participate the establishing Chinese culture quality management and to enhance our quality level.


And then Dr. Jane Wong (Chairman, HKSQ) (黃惠僑 - 香港質量學會會長) gave welcoming speech. She briefed ESG and financial requirement in Hong Kong. As one of the pioneers in developing the green bond market, Hong Kong is the first region in Asia to sign a green bond commitment, reflecting the government's commitment to the environment.


After that Prof. Lin Chang (Chairman, Macau Quality Management Association (MQMA)) (林暢 - 澳門品質管理協會會長) gave speech. He said Macau economic was affected by pandemic and reduced half GDP before pandemic. We needed to think how to recover in the post-pandemic era. Thus, we promote ESG on industry and society about risk and quality management.


Finally, Mr. Chung (Director, THQA) (鍾國屏 - 臺灣醫療品質協會理事) gave a speech and he firstly introduced THQA to us. He supported the healthcare industry should focus on customer satisfaction and achieve perfection as Chinese culture (盡善盡美).


Summit keynote speech session:
The first speaker was Mr. Yang (楊駕人) (金門酒廠實業() 總經理) and his topic named “Kinmen Winery Company sustainable development and social responsibility” (金酒公司永續發展與社會責任). In the beginning, Mr. Yang briefed the development history of his company and mentioned their quality, technology and management.  In quality management, they achieved ISO 9001, ISO 22000, HACCP, ISO 17025 and Quality Winery Certification. 


Then he introduced their environment activities to match Kinmen low carbon strategies including water usage reduction, reuse and waste water treatment.


Finally, he introduced the social aspect such as maintaining the Chinese wine culture. He also stated the governance to reduce the risk and enhance the sustainable supply chain management. Lastly, he said this year is 70th anniversary and they expect the next 70 years to enhance their ESG unit sustainable development.


The second speaker was Mr. Li Yongsheng (李永生) (國家能源集團企管法律部(改革辦) 副主任) and his topic named “Realizing the Truth, Goodness and Beauty of ESG through establishing a World-Class Enterprise” (在建設世界一流企業中實現ESG的真善美). Firstly, he introduced their group.


Mr. Li also mentioned the original of ESG in view of Chinese Culture such as Tao Te Ching (道德經). Then ESG could be traced back to BC1044 in China. And now China government is focused on environmental protection and governance.


At the end, Mr. Li proposed several actions to achieve ESG through Truth, Goodness and Beauty (真善美) in different aspects including Industry, Investment, Management, Technology and Responsibility.


The third speaker was Prof. Tan Cher Ming (陳始明教授) and his topic entitled “Lifetime Extrapolation from Accelerated Life Test Data and its Challenges”. Firstly, he briefed the important of extrapolation for lifetime prediction especially in electronic and semiconductor product.  Accelerated life testing (ALT) was mentioned that could help to save time and money for identifying design and manufacturing deficiencies. 


And then Prof. Tan introduced three common models employed in ALT and they are Arrhenius Model, Peck Model and Coffin-Manson Model.


Finally, Prof. Tan showed some case studies such as high power LED packaging to explain how different model predicted their lifetime so as to understand the physics of failure and to assess the model correctness or derive a correct acceleration model.


The fourth speaker was Mr. Dominic Lam (林俊康) (香港中華廠商聯合會工業發展基金有限公司 (CMA檢定中心) 首席營運總監) and his topic was “Commercialization of technology to help the industry transformation” (科技商品化, 助業界轉型). Minda and I took a photo during Dominic presentation for memory.


In the beginning, Mr. Lam introduced CMA Testing and CMA plus, as well as, Hong Kong reindustrialization policy. Then he mentioned their Technology Commercialization Platform. The pathway was introduced from Screening to Reindustrialization (SOCCER).


Finally, Mr. Lam demonstrated some projects cooperated with universities in Hong Kong and transferred their technology for contributing to society such as mobile PCR car for Covid testing.


The fifth speaker was Mr. Wang-Chuan Juang (莊旺川) (臺灣醫療品質協會 秘書長) and his presentation title was “From the Wisdom of Ancestors, Deeply Cultivating the Practice of Hospital Quality Control Promoters” (從老袓宗的智慧深耕醫院品管推動者的修練). Mr. Wang considered organization culture in three dimension including Management, Technical and Philosophy.


Then Mr. Wang summarized the wisdom of “To be Water” and “Tao Te Ching”. Finally, he purposed eight strategies as follows.

i)                   The highest good is like water, good for all things without fighting (水善利萬物而不爭)

ii)                 Do what everyone hates (處眾人之所惡)

iii)               Deep Mind and Think Big (心善淵)

iv)               Give and Resilience (與善仁)

v)                  Integrity (言善信)

vi)               Good Governance such as ISO (政善治)

vii)             Professional and Versatile (事善能)

viii)           Face to resistant like water (動善時)


The last speaker was Mr. Shuh Chen(陳樹) (中華中道領導文化總會 理事長) and his presentation topic named “Middle Way (Zhongdao) Lead to Implement the Sustainable Governance” (中道領導落實永續治理). He said the effective way to solve problem of human being is “Zhongdao”(中道).


Then he briefed the relationship among leadership, implementation and organization culture. Then he explained how to employ “Zhongdao” from social, science, philosophy and self.


Lastly, Mr. Chen discussed the integration between “Zhongdao” and Sustainable Governance.


After keynote speech session, Dr. Duan Yonggang (Vice-Chairman, CAQ) (段永剛博士 - 全球華人品質聯盟()理事長、中國質量協會副會長兼秘書長) gave speech and he appreciated all supporters to WACQ activities. Quality is inseparable from cultural genes and WACQ focused on Chinese Culture. China Quality magazine would do more jobs on Chinese Quality. Moreover, WACQ would expand to individual member in future.


Before the end of summit, Mr. Johnson Tan Swan San (Chairman, SQI) (陳川昌 - 新加坡質量學院主席) introduced the 8th World Summit for Chinese Quality in Singapore.


Then Mr. Tan showed a video to visit Singapore.


Finally, Mr. Tan showed a sing named “The Story of a Small Town”


At the end, all participants took a group photo online and onsite.


Then Minda and I had lunch in CityU. After that we joined the afternoon paper presentation session.


Paper presentation session was for onsite only and video presentation would be posted in CSQ website. My video topic named “Use Transformation Bridge to analyze the Contradictions among different Anti-epidemic Methods to Enhance the Decision Quality” (運用轉換橋分析不同抗疫方法之間的矛盾問題以提升決策質量).

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