The Hong Kong Trade Development Council (HKTDC) on Monday said a new index it has introduced to gauge how well the city fares in environmental, social and governance (ESG) has identified several strengths.

The council said it used the index in a survey of more than 1,200 vendors and buyers during several of its trade fairs and business events last year.

Overall, Hong Kong received a total of 64.3 points on the index, a figure well above the neutral point of 50.

Irina Fan, HKTDC's director of research, said the findings suggest Hong Kong excels in areas such as availability and diversity in green and sustainable products or services, talent training and market connection with international trade partners.

Fan said the survey showed that ESG considerations are increasingly regarded as integral elements in business decision-making processes.

Buyers also indicated a willingness to pay a premium of at least 10% for ESG products, while vendors reported additional profit margins from engaging with ESG businesses, Fan said.