Over the past year, executives in Hong Kong and across the broader APAC region have treated constrained hiring as a temporary pause, a rational response to economic uncertainty that would ease once conditions improved. However, as we move through 2026, that anticipated rebound has not arrived. Instead, limited hiring has solidified into a structural shift, fundamentally reshaping how organizations think about growth, productivity, and talent investment. In this environment, the "low hire, low fire" reality is no longer a stopgap; it is the new baseline. The focus has decisively shifted from speed and scale to precision. Every headcount approval is scrutinized, every role is re-evaluated for its direct impact on revenue and growth, and the cost of a "bad hire" has never been higher . For HR leaders and hiring managers in Hong Kong, this means redefining what "the right hire" actually looks like and overhauling the processes used to find them. The Shift from "Culture Fit" to "Capability Fit" For years, if you wanted to hire well, "culture fit" was the answer. It often translated to hiring people who looked, thought, and acted like the existing team. However, in a market where every hire must drive tangible business outcomes, relying on a vague sense of chemistry is a luxury employers can no longer afford. Leading HR teams are ditching gut feel for data-driven, structured interviews. Unstructured interviews, which often capture how well someone presents in the moment rather than their sustained performance, are being replaced by rigorous job analyses that clarify the behavioural and cognitive requirements of a role before any resumes are even reviewed. "Traditional, unstructured interviews work the same way. They capture how someone presents in the moment – their confidence, charm and ability to make small talk – rather than the behaviours, work styles and decision-making patterns that drive sustained performance in a specific role." Human Resources Director (HRD) Asia. "Gut feel is out, structure is in: Why HR leaders are rethinking interviews By defining success in behavioural and outcome terms, organizations can build evaluation criteria that ensure candidates are scored consistently and fairly. This shift to "capability fit" or "cultural capability" ensures that candidates are evaluated on whether they can excel in a clearly defined job, rather than whether they feel familiar to the interviewers. The Rise of Flexible and Contract Hiring As economic uncertainty persists, employers in Hong Kong are increasingly adopting flexible hiring models to maintain agility while controlling costs. Contract hiring, once viewed primarily as a stopgap measure, has gained significant traction as a strategic workforce solution. According to recent market insights, 34% of professionals in Hong Kong cite flexible work arrangements as their primary motivation for considering contract roles, while 28% view them as a strategic pathway to permanent employment. For employers, contract and Statement of Work (SOW) arrangements offer the ability to bring in specialized skills for critical projects, particularly in areas like digital transformation, compliance, and technology change, without the long-term commitment of a permanent headcount. This makes sense in the context of a market lacking transparency. 

Supporting Community Impact

From June 2025 we restructured our leadership team to be more effectively positioned to meet future market needs. After 24 years with the business and working as our Managing Director for 23 years, Mathew Gollop, steps into a CEO role where he will also be responsible for Market Development. In this capacity he will focus on growing new and existing business lines through client engagement and development. He will remain a key brand ambassador and continue to drive our social impact strategy. His role is still full-time in terms of CG focus, but will shift to invest more of his capacity externally, retaining a personal focus on nonprofit, sustainability & energy transition and other complex and unconventional searches. Stepping into the MD seat is Ross Carter. Ross joined CG at the beginning of 2025 to grow our ConnectedSolutions brand (encompassing contracting and workforce augmentation). Whilst he will maintain oversight on this business line, he also takes full responsibility for the wider business P&L and will directly manage the existing permanent recruitment leadership team. We see this shift as a natural response to challenging markets that require both more time spent understanding our clients’ needs and evolving trends, as well as more robust business planning and governance.

High Profile Hong Kong IT Development Project

The global energy transition represents one of the most significant economic transformations of our time. As organisations navigate this complex landscape, the integration of technical expertise with investment acumen is emerging as a critical success factor, particularly in Hong Kong's rapidly evolving market. Hong Kong's Approach to Energy Transition Outside of its own net zero goals, Hong Kong is positioning itself as a hub for green and sustainable finance. In 2023, Hong Kong experienced a significant increase in green, social and sustainability debt issuance. GSS+ debt originating from Hong Kong reached USD18.2 billion, representing a year-on-year growth of 236%. With US IPOs for mainland and local organisations hampered by US/China relations, Hong Kong offers a strong alternative. Combining its proven financial infrastructure with an ongoing commitment to investing in the energy transition ecosystem should see it excel in tis field, as long as the talent supply can align. Talent Pool Structure What we see is that there are converging routes for talent into this sector. Renewables cannot be considered a ‘new’ sector, but it is evolving rapidly. Solar and Wind were the mainstay assets, but the big focus is now on battery energy storage systems (BESS) and the hybrid opportunities this creates, with CATL making a splash with their upcoming IPO in Hong Kong. Other sectors such as hydrogen and biofuels are also gaining traction, the latter evidenced in is Bain Capital's $400 million investment in EcoCeres, a biofuels company based in Hong Kong. The sources of talent to support the investment sector in these fields are varied: Traditional equity/debt market professionals from buy and sell side with existing experience in renewables or, transferable skills from the wider energy/infrastructure space Technical experts within operators/utilities who have transitioned to M&A or venture investment related roles within their organisations Strategy/corporate development/M&A experts from corporate, government or state-owned enterprises In terms of deal geography exposure, it depends on the sector. A lot of Chinese government backed investment in solar and wind has been aggressive in South America and Europe, but new deal flow has slowed. Europe and the UK tend to be a key focus in the BESS sector with Japan and Australia seen as the most likely APAC markets. With geopolitical tensions where they are, it is unlikely that we’ll see any US focused investment from Hong Kong/China in the short to medium term. Talent with European deal experience tends to be based out of the UK with a number of key funds/institutions having specialised teams in each of the renewable sub-sectors. The Talent Integration Imperative Energy transition investments require a unique blend of technical understanding and financial expertise. When investment decisions are informed by deep technical understanding, risk assessment becomes more robust and the potential for successful outcomes increases. The presence of specialists with a technical background within investment teams gives investors confidence. This is not only confidence in the initial investment decision, but that the appropriate skills are in place to ensure problems can be resolved before they escalate in the operational context. As the market matures and competition increases, the ability for those advising the deal process to deliver genuine insights and value creation will be a positive differentiator. The Path Forward For Hong Kong and other financial centres, the opportunity to lead in energy transition finance will depend on attracting, nurturing and retaining key talent. Organisations that successfully integrate technical, and investment talent will be best positioned to capitalise on emerging opportunities. Our recent market interactions indicate there is no shortage of talent willing to consider roles in Hong Kong in this sector and, for the well-funded, there is a limited window of opportunity to secure key people before things heat up and we move into another cycle. For more information on recruiting in the energy transition space (investment and operational/technical) and the wider ESG & sustainability sector, contact Mathew Gollop at mat@connectedgroup.com .

As an ESG recruiter, a common question I hear is: “Do I really need a sustainability certification—and if so, which one?” The answer isn’t one-size-fits-all. While experience remains paramount, the right certification can accelerate your career, bridge knowledge gaps, and signal expertise in this rapidly evolving field. In this edition, we break down the why, who, and how of ESG certifications—from globally recognised credentials to specialised courses—to help you navigate the options and invest in the right one for your goals. Why Take an ESG Course and Certification? In today’s business world, ESG expertise isn’t just valuable—it’s becoming essential. Whether you’re looking to deepen your impact in your current role or transition into sustainability-focused work, an ESG certification offers more than knowledge: it provides tangible proof of your commitment and skills. These programmes help you master the frameworks, tools, and language needed to turn principles into action—from analysing ESG risks to designing strategies that align profit with purpose. For career changers, certifications provide a structured way to build credibility in the field. They signal to employers that you’re not just interested in sustainability, but serious about applying it in real-world business decisions. For seasoned professionals, certifications offer a way to validate experience, stay ahead of regulations, and lead initiatives with confidence. Ultimately, ESG training is about more than adding a credential—it’s about equipping yourself with the mindset and tools to drive meaningful change in an evolving corporate landscape. That said, ESG certification and knowledge are not a substitute for work experience within the industry; they are a supplement, not a replacement. Who Should Consider ESG Certification? ESG certifications are ideal for professionals across various sectors who want to lead sustainability initiatives and make informed investment decisions. This includes business leaders, investors, and anyone looking to enhance their professional reputation and career prospects by demonstrating a commitment to responsible practices. Whether you aim to meet stakeholder expectations or position yourself as a leader, an ESG certification provides a structured and recognised pathway to achieve these goals. How Should You Choose the Right Certification and Course for You? Choosing the right ESG (Environmental, Social, and Governance) certification is a crucial step that can greatly impact your career in sustainable development and ethical business practices. Personal and Professional Goals Before diving into the various ESG certifications, reflect on your personal and professional goals. Are you aiming to enhance company performance through sustainable practices, or do you want to integrate ESG risks and opportunities into investment portfolios? Knowing your objectives will help you choose the certification that aligns with your career path and interests. Additionally, consider your current level of ESG knowledge and skills. Are you looking to learn the basics, deepen your expertise in a specific area, or update your knowledge while networking with peers? Having a clear idea of what you want to achieve will guide you in selecting the right ESG training programme. Relevance to Each Industry When choosing an ESG certification, consider how it fits with your current industry or the one you aim to enter. For finance professionals, certifications focusing on ESG risks and investment strategies are often more relevant. In contrast, those in corporate roles may benefit more from certifications centred on sustainable development and social responsibility. For example, a financial analyst might find the CFA Institute's ESG Investing Certificate useful, while a corporate sustainability manager might prefer the Global Reporting Initiative (GRI) Standards Certification. Selecting a certification that aligns with your industry ensures that the skills and knowledge you gain are directly applicable to your professional context. Continuous Learning Resources The ESG field is dynamic and constantly evolving. Therefore, it's important to choose a certification that offers ongoing educational opportunities and resources. Look for programmes that provide access to updated materials, discussion forums, and networking opportunities with other professionals in the field. For instance, some certifications include memberships to professional organisations that offer continuous education and networking events. This can help you stay informed about the latest trends and best practices in ESG, ensuring that your knowledge remains current and relevant. Evaluating Cost, Time, and Mode of Instruction When choosing an ESG certification, consider both the cost and the time commitment involved. Ensure that the investment fits within your personal and professional circumstances. Some certifications may offer flexible learning paths or part-time options, which can be particularly advantageous for working professionals. Additionally, consider your preferred learning style—do you prefer pre-recorded modules, live instruction, or exam-based certifications?

Hong Kong is witnessing significant regulatory changes and evolving trends in ESG, sustainability and green finance. These shifts not only influence corporate practices but also reshape the dynamics of talent supply and demand within the region. In our last article we talked about future talent demands which we still see as likely, although the general economic backdrop has meant that progress is still slow. The shift in tone from the current US administration has also injected a level of uncertainty. Although it seems China will remain committed to its aggressive renewable energy growth and Hong Kong’s Financial Secretary, Paul Chan committed to “strengthen cooperation with other economies to bridge the ‘significant funding gap’ in global climate change responses” (SCMP 2025) at the World Economic Forum in Davos. Regulatory Landscape Recent developments indicate a robust commitment from Hong Kong's regulatory bodies to enhance the quality and scope of ESG disclosures. The Hong Kong Exchanges and Clearing Limited (HKEX) has mandated more detailed climate-related disclosures from listed companies, effective from January 2025. This move aims to align local practices with international standards, particularly the International Sustainability Standards Board (ISSB) guidelines. As a result, companies will need to provide comprehensive reports on their sustainability strategies, risk management, and climate-related metrics. The Accounting and Financial Reporting Council of Hong Kong has also emphasized the need for expertise in sustainability practices, noting that a significant portion of Hang Seng Index members received limited ratings in their sustainability reports (SCMP, 2025). This gap highlights the ongoing need for skilled professionals who can navigate the complexities of ESG reporting. Emerging Trends in ESG and Green Finance Several key trends are shaping the ESG landscape in Hong Kong and the broader Asia-Pacific region: 1. Increased Integration of ESG Metrics in Executive Incentives: According to a report by WTW, approximately 74% of APAC firms are linking ESG metrics to executive incentives. This trend is expected to drive accountability and enhance corporate governance, making sustainability a core component of business strategies (HRD Asia, 2025). 2. Focus on Climate Adaptation: With climate change posing significant risks, there is a growing emphasis on adaptation strategies alongside mitigation efforts. Hong Kong is set to introduce adaptation criteria for its taxonomy, ensuring that financial flows are directed towards projects that enhance resilience against climate risks (Responsible Investor, 2025). 3. Rise of Transition Finance: The concept of transition finance, which supports companies in moving towards greener practices, is gaining traction. This includes funding for industries that are not fully green yet but are making substantial efforts to reduce their carbon footprint. As China's national carbon market expands to include more sectors, Hong Kong's financial institutions are likely to follow suit, promoting investments in transitional projects (Eco-Business, 2025). 4. Standardization and Assurance in ESG Reporting: The recent push for standardization in ESG disclosures, driven by new regulations, will likely increase the credibility of sustainability reports. Companies that adopt these standards early may gain a competitive edge in attracting investors who prioritize transparency and accountability (Eco-Business, 2025). 5. Publicly Accountable Entities – 2028 Deadline: Hong Kong’s public institutions will need to meet mandatory reporting requirements by 2028. These organisations cover a significant portion of the local real estate footprint and employment base and their role in both driving the conversation a developing talent will be influential. Impact on Talent Supply and Demand As we outlined in the introduction, the slow economy is not yet driving a high volume of hiring but, we are confident that we will see increasing demand as the year continues. Key skills areas are likely to be; Carbon Accounting and Emission Reporting: As businesses are required to disclose not just Scope 1 and 2 emissions but also Scope 3 emissions, the need for professionals skilled in carbon accounting is critical. Companies will seek individuals who can manage complex data and develop credible transition plans. Those who can bridge between technical data, reporting skills, and ESG knowledge will be particularly in demand. Sustainability Reporting and Compliance: With new regulations mandating detailed ESG disclosures, there will be ongoing demand for compliance experts who understand the intricacies of local and international reporting standards. This trend is echoed in the call for more expertise in sustainability practices among Hong Kong’s accounting bodies (South China Morning Post, 2025). Consulting and Advisory Roles: As firms navigate the regulatory landscape, the need for consultants who specialize in ESG strategies and compliance will rise. These roles will involve advising companies on best practices for sustainability integration and helping them develop effective transition plans, both at board and leadership team level. Green Finance Specialists: The expansion of green finance initiatives will create opportunities for finance professionals who can assess and manage investments in sustainable projects. Understanding the nuances of green bonds and sustainable financing will be essential. Conclusion  Hong Kong is at the cusp of a significant transformation in its approach to ESG, sustainability, and green finance. The regulatory changes and emerging trends indicate a clear shift towards increased accountability and transparency, creating a robust demand for skilled professionals in the field. As companies adapt to these changes, the talent supply in Hong Kong will need to evolve, ensuring that the workforce is equipped to meet the challenges and opportunities of a sustainable future. With the right investments in talent development and training, and an agile view on hiring international talent, Hong Kong can position itself as a leader in the sustainable finance landscape in Asia.

Hong Kong is in a difficult phase of its development as a talent hub. The political unrest of 2019 followed by the COVID pandemic saw a well-documented talent outflow. This has compounded a process of localisation that have often left organisations overly dependent on Cantonese language skills. This then restricts the future talent pipeline, leaving companies fighting over a small supply. Whilst ‘diversity, equity & inclusion’ (DEI) is often viewed more about positive PR than real impact, it goes much deeper than this, particularly in a market like Hong Kong. With declining birthrates and an ageing population, the local supply will only shrink. As a result, if Hong Kong is to remain competitive, it needs to embrace DEI as a business risk issue. DEI should be a key driver to sustainability and is core within the ‘S’ of the ESG framework. In ConnectedGroup’s latest Talent Insights Report , this wider issue is discussed and a guide to best practices is provided. At ConnectedSolutions , we look at this through the technology transformation lens to identify how transformation projects can both embrace diverse talent sources and enable effective longer-term integration. Change projects often fail because they operate in a vacuum which is something our model seeks to address, both for the sake of the deliverables as well as the longer-term cultural impact. Our model takes a proven transformation framework and looks at 3 common shortfalls: Poor cultural integration of transformation team members into the client whilst they also feel detached as employees of the consultancy. Lack of investment in pre-program and ongoing training which feeds an over-reliance on senior onsite professionals or offshore resources. As a result of the above, a lack of diversity and suitability for the conversion of talent into permanent employment, post project completion. These issues are resolved via: Strong community partnerships to source from a diverse talent pool Integration of industry recognised training programs that commence pre-project NGO expertise assigned to support and educate on the integration of talent with additional needs HR & Wellbeing expertise assigned to; o Support and engage transformation teams as ConnectedSolutions employees o Work with clients to ensure effective integration, retention and potential for conversion to permanent employment on project completion

Talent now transcends the industry barriers in the ESG & Sustainability [ESGS] space, and the meaning of ‘sustainability’ has become more diverse and complex. As a result, we have extracted this function as a dedicated specialism and have spent much of 2024 speaking with a wide range of professionals ranging from Heads of Sustainability down to graduates entering the sector. These conversations and our wider research have given us insights into the trends, challenges and attitudes shaping the space which we have outlined here. Moving forwards, we will continue to share our findings and will launch a quarterly newsletter in November ( follow us on LinkedIn to get the notification). The Last 12-18 months Overview If you have been blissfully ignorant of the employment market situation in Hong Kong (in which case, we envy you!) then you can review our quarterly Talent Insight Reports to get the low down. In short, it has been a difficult period with a much lower volume of employment opportunities in Hong Kong. Economic challenges, such as high inflation and slower growth, along with geopolitical tensions, have impacted the pace of the green transition and the associated job market dynamics. Hong Kong Headcount ESGS has seemingly weathered this period without any significant headcount loss, other than the trimming of a smaller number of senior positions in some larger corporates. Team structures supporting data and reporting seem more mature and embedded, and hence have survived any downsizing. However, investment in wider training exercises or earlier stage projects have more commonly been put on hold. Cost-cutting and fiscal conservatism have proved to be the norm across most sectors. This restraint on new projects and the ability for individuals to make an impact is becoming a leading cause of frustration amongst sustainability professionals. This is one of the biggest reasons for talent to look outward into the market. However, new roles have been extremely limited with a small uptick in hiring only beginning to be seen in the current quarter. Leading by Example One of the key organisations pushing forwards this year has been the Hong Kong Jockey Club, solidifying a core team and outlining the beginning of a journey to pull together disparate projects and articulate their sustainability goals in a more cohesive way. When a major institution such as this sets out a clear vision, it can only be a positive message to the rest of the market. We see that their efforts will likely set the standard for other Hong Kong institutions to follow. The Next 12-18 months Reporting Talent In the short term, we are likely to see a rise in demand for individuals with reporting experience to help organisations transition to HKFRS 1 and HKFRS 2 / IFRS S1 & S2 and the new HKEX standards. Whether this talent is hired on a permanent, contract or consulting basis will depend on the current maturity of the relevant reporting function. Currently we observe that while there are companies who have well-established in-house reporting structures, there is another set of organisations who are lagging, and have been managing by outsourcing their reporting to third parties. With the increasing complexity of mandatory requirements, it is likely that these organisations will need more in-house capacity and resources. The mid-level reporting talent currently sitting in more mature teams/departments are likely to become a prime target for these companies. Salary increases and bigger titles will be an attraction which will likely mean an increased demand in a relatively tight talent pool. One defence against attrition in these functions will be the increased use of automation for ESG reporting and data systems. As these platforms become more sophisticated, it will enable teams to keep up with the ever-evolving HKEX & ISSB/IFRS standards without the need for increased headcount. However, we don’t see this being effective to the degree where these efficiencies will balance the increased talent demand in the shorter term. Strategy & Integration The general sense from professionals in the sector (across all industries) is that there will still be a strong future demand for talent in Hong Kong. This growth is likely to come from the integration end of the spectrum as the need to pull the ESGS goals into the wider business strategy is becoming critical to ensure positive impact is embedded and measured. In this area, we already see major gaps in expectations versus reality. Hong Kong lacks depth in its senior pool (most senior leadership in sustainability are not home grown). At one layer down, outside of data/reporting/compliance, the same problem exists. Organisations are often expecting to find a perfect combination of technical sustainability knowledge, relevant business exposure, plus the change management skills. However, this mix of skills is in very short supply The two solutions to this are either to cast the net wider and recruit globally or, pull talent with the business knowledge and soft skills across and cross-train them. The challenge with the latter is that not everyone in a functional specialism wants to make this shift but, candidates from transformation/change backgrounds could be a key target. Hong Kong’s Role For Hong Kong, whilst it has had a slower start in terms of development in this space, there is an opportunity to play a pivotal role in the regional and global ESGS ecosystem. With both Hong Kong and Beijing governments framing HK as the key place for Chinese firms to IPO in the coming years, the complexity of cross-border and global requirements will lead to increased need for harmonisation of regulations. HKFRS S1 and S2, are designed to fully align with the IFRS S1 and S2 standards and this alignment will help to better integrate Hong Kong businesses with global and Mainland Chinese capital markets. This is an area in which Hong Kong can play a leading role, particularly if the government’s efforts to strengthen its position as a global talent and green financing hub continue to gain traction. With the HKMA’s latest net zero targets for the banking sector, the flow of capital looks like it will continue to advance against a more sustainable agenda. One thing is for certain, corporate sustainability is here to stay and this is not just a listed company issue. The Sandpiper Global Reputation Capital Index report highlights what we see on that ground - that even some larger private organisations are seeing the sense in ensuring their ESG reporting meets the market standards. Key Observations Reporting and data talent will likely be in demand once again as we head into 2025 Experienced strategy and integration talent is in very short supply. Global talent sourcing or cross-functional training are the key solutions. Our Core Services We can support organisations with their ESGS talent agendas in a number of ways: Executive recruitment Retained executive search Contract resources (individuals sub-contracted for specific periods on yours or our payroll) Statement of work driven projects (you have a goal to achieve, and we deliver the team and run the program) Talent management, leadership and wellbeing consultancy Our Value Adds We are happy to assist our clients with additional data, insights and opportunities such as: Salary surveys Case study sharing and strategy benchmarking Webinar and events support/co-creation Industry roundtables Written by Mathew Gollop & Aadya Kapur . For more information, please reach out to Mathew at mat@connectedgroup.com