亚太地区-电信行业-亚洲电信业：ESG的10大问题

Disclosures & Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it. Issuer of report: The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Research at: https://www.research.hsbc.com  This report helps investors evaluate the issues and assess relative ESG and sustainability strengths in telecoms  In an increasingly connected world, telcos assume systemic importance in areas from security policy to disaster response  Energy usage, technology inclusion, data security, and balancing different stakeholder interests are focus points Our approach. This report is the latest in an HSBC series on the role that ESG plays in different equity sectors in Asia. It aims to help investors make more informed decisions based on the relative ESG strengths of the listed telecom companies we cover. We recommend reading the report in conjunction with ESG Integrated: Taking ESG analysis in Asia to the next level (1 June 2020), which launched the series. It explains our preference for looking at ESG on an integrated basis rather than taking a scoring and ranking approach (see Box 1 on page 24), and also flags the metrics in HSBC’s in-house ESG database. Focal points. The 10 questions are summarised on page 6. The main areas of focus are: 1) Environment (E) linked to energy usage, waste and safety concerns; 2) Social (S) factors relating to disaster preparedness, technology inclusion and data protection; and 3) Governance (G) issues relating to board alignment and management of stakeholder interests. The systemic importance of the industry raises multiple ESG issues. In an increasingly connected world, telecom infrastructure will assume ever larger importance; as an enabler of economic growth; to protect and advance national security policy; as a large contributor to government budgets via taxes, dividends and spectrum fees, and as large employers. Telcos are also critical in terms of energy usage, and safeguarding against vulnerability to natural disaster. Governance is key to manage stakeholder interests. Governance in telecoms is a complicated and often highly-charged topic. The starting point here is the fact that in most markets the state still owns a stake in the largest telecom operator (or, in the case of China, all three). The tension between majority and minority shareholders can be skewed in favour of the former. Critical issues include: the prevention of corruption and bribery, given large sums involved in procurement and spectrum fees; safety and quality; marketing standards; and managing the proximity to government. 29 June 2020 Neale Anderson* Head of Telecoms Research, Asia Pacific The Hongkong and Shanghai Banking Corporation Limited neale.anderson@hsbc.com.hk +852 2996 6716 Wai-Shin Chan, CFA Head, Climate Change Centre; Co-Head, ESG Research The Hongkong and Shanghai Banking Corporation Limited wai.shin.chan@hsb