Linking Corporate Social Capital to HKQAA Sustainability Rating and Research (SRR) for Hang Seng Corporate Sustainability Index Series (Index Series)


1. Introduction

ISO 26000 is an international standard which defines the social responsibility for organizations. The standard summarised the social needs and expectations for corporations to consider their social aspects. The standard also deployed the social responsibility into 7 core subjects. The organization should consider the social needs and expectations while doing business.  According to the GD’s framework design, the 7 core subjects of social responsibility are the entrance portal for the corporation to build up their own CSC.


Since 2014, Hang Seng Index Company Limited has appointed HKQAA to perform scoring and rating service on the selected Hong Kong and Mainland China listed companies. Every year more than 600 listed companies are assessed by using HKQAA SRR assessment model. HKQAA SRR assessment model is also developed based on ISO 26000, thus providing a seamless interfacing between the CSC management model and HKQAA SRR

2. HKQAA SRR Scoring for Index Series


The HKQAA sustainability rating and research (HKQAA SRR) is designed to rate a company’s system maturity and risks with regard to sustainability performance, based on and with reference to international guidelines to provide an important input for the compilation of the Index Series. A fact-based scoring approach is applied in rating the company’s ability to manage its sustainability performance and risk. In order for the scoring to be conducted in an objective manner, an assessor should base on the available implementation evidence to determine the system’s management maturity and relevant risk level. The following sections are extracts from the HKQAA-HSIL Sustainability Rating and Research Scoring Handbook (SRR Handbook) to facilitate a basic understanding of the methodology.  For the full methodology, please refer to the SRR Handbook.


Sustainability Rating Assessment
HKQAA SRR Assessment Model Methodology

HKQAA SRR Assessment Model contains several elements. The sustainability performance of each eligible company will be measured against seven core subjects.


Element 1. Seven Core Subjects

Forty recommended practices are consolidated under seven core subjects:


Element 2. Practice Types

Mandatory practices refer to those that all the participants shall implement.

Desired practices refer to the mandatory practices assigned to designated industries that may have higher potential impact on these particular issues.

Voluntary practices refer to advanced practices that a company is encouraged to implement. Scores gained for these practices will be taken into account if they can help improve the subject scores.

Element 3. Plan-Do-Check-Act Scoring Approach

A company’s performance on managing the practices is collected in the form of a questionnaire. Performance is rated using a five-point scoring approach





1 point

Starting Phase

No action taken.

2 points

Forming Phase (Plan)

Actions are under development/established without full implementation/implemented on an ad-hoc basis.

3 points

Implementing Phase (Do)

Actions have been fully implemented with advance planning to realise the recommended practice.

4 points

Confirming Phase (Check)

Data collection and analysis on the actions are conducted to gather relevant information to evaluate the effectiveness of the implemented practice.

5 points

Improving Phase (Act)

There is a review of the implemented actions for identifying improvement areas.

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