Hong Kong strengthens position as Asia’s leading sustainable fashion hub

– HKTDC ESG Index 2026 highlights rising confidence

Hong Kong’s position as one of Asia’s most prominent sustainable fashion hubs has been further strengthened, with the HKTDC ESG Index 2026 released by the Hong Kong Trade Development Council (HKTDC) for the fashion industry rising to 65.5 in 2026, up 2.3 percentage points from 2025. The increase reflects growing industry confidence in Hong Kong as a premier platform for sustainable fashion development and ESG-related business opportunities.

The latest findings also highlight the increasing commercial value of sustainability. Among exhibitors offering ESG-related products or services, 61% reported achieving additional profit margins of at least 10%, while 47% of buyers sourcing ESG-related products were willing to pay a premium of 10% or more.

The results show that ESG (Environmental, Social, and Governance) is increasingly embedded across the fashion value chain, while businesses recognise its potential to drive innovation, competitiveness and growth. The proportion of fashion practitioners considering ESG essential rose from 85% in 2025 to 92% in 2026, with those rating it “very important” increasing overall from 15% to 23%. This trend was markedly stronger among Chinese Mainland respondents, with 45% of whom regarded ESG as “very important” in business decision-making, representing a significant 27 percentage-point increase compared with 2025.

HKTDC Principal Economist (Global Research Team) Alice Tsang, said: “The latest findings show sustainability is becoming an increasingly important commercial driver for the fashion industry. Not only are more companies integrating ESG into their business strategies, but many are also seeing tangible financial benefits. The strong profit margins reported by ESG-related suppliers, together with buyers’ willingness to pay significant premiums for sustainable products, demonstrate that sustainability helps create business value. This trend, combined with Hong Kong’s strengths in international connectivity, green finance and professional services, reinforces the city’s role as a leading sustainable fashion hub in Asia.”

Hong Kong’s ESG ecosystem earns strong industry recognition
Hong Kong’s strengthening position as a sustainable fashion hub was reflected across all three ESG dimensions. While the overall ESG Index rose to 65.5, all three sub-indices for the fashion industry also recorded gains, with the Environmental Sub-index increasing to 64.3, the Social Sub-index climbing to 67.0, and the Governance Sub-index advancing to 66.1. The results indicate that fashion practitioners increasingly value Hong Kong’s strengths in green finance and sustainable investment opportunities, cross-border ESG knowledge exchange and business collaboration, as well as its effective ESG reporting framework and international connectivity. Together, these advantages reinforce Hong Kong’s role as a leading platform for sustainable fashion development in Asia.

ESG adoption delivers business value
In addition to assessing Hong Kong’s strengths as a sustainable fashion hub, the research highlights that sustainability is increasingly becoming an integral part of business strategy, product development and sourcing decisions, reflecting both evolving market expectations and emerging business opportunities. Other key findings:

• The share of fashion practitioners engaged in sourcing or selling ESG-related products and services rose from 33% in 2025 to 46% in 2026.
• Sustainable supply chain platforms (54%), AI analytics (31%) and supplier collaboration tools (31%) were identified as the most valuable digital solutions that Hong Kong offers for supporting ESG compliance.
• Respondents cited tools for better transparency and traceability (44%), ESG certification (40%), and ESG audits and risk analysis solutions (28%) as the top three supply chain solutions that Hong Kong offers for complying ESG reporting requirements across complex supply chains.

HKTDC Director of Research Bruce Pang added: “Fashion businesses increasingly recognise Hong Kong’s unique strengths and solutions, which positions the city as an ideal platform for companies looking to identify sustainable business opportunities, forge international partnerships and navigate evolving global ESG requirements. With events like CENTRESTAGE facilitating the exchange and showcase of innovative and sustainable fashion, Hong Kong is well placed to support the industry’s transition towards a more sustainable future.”

HKTDC advancing sustainable fashion development
The HKTDC is committed to promoting sustainable business development through its trade fairs, conferences, market intelligence and business-matching platforms. From Fashion InStyle and NEXT@Fashion InStyle, which drive innovation in sustainable fashion and materials, to CENTRESTAGE, taking place this September, where designers, brands and buyers will explore emerging trends including sustainability and responsible fashion, HKTDC continues to connect industry players with new ideas, partners and opportunities. Beyond fashion, HKTDC advances dialogue on ESG, sustainability reporting and green finance through major conferences and research initiatives, supporting businesses in navigating the global sustainability transition.

Reference:  

• Full article of “Very Much in Style: ESG in the Fashion Industry”:
  https://research.hktdc.com/en/article/MjQwMzc3MzI2NA
• HKTDC Research website: https://research.hktdc.com/en/
• CENTRESTAGE 2026: https://www.hktdc.com/event/centrestage/en

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About HKTDC
The Hong Kong Trade Development Council (HKTDC) celebrates its 60th anniversary this year. The HKTDC is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With over 50 offices globally, including 13 in the Chinese Mainland, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus.