The Hong Kong government has introduced a comprehensive roadmap for sustainability disclosure, embracing the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards). This initiative marks a significant step in advancing ESG and carbon-neutral strategies, with mandatory adoption of ISSB Standards for publicly accountable entities (PAEs) targeted by 2028.
Christopher Hui, Secretary for Financial Services and the Treasury, emphasized Hong Kong’s role as a global leader in green finance. By aligning with ISSB Standards, the city aims to solidify its position as a hub for sustainable financial practices and facilitate the global green transition.
The roadmap outlines phased implementation of climate-related disclosures. Starting January 2025, Main Board issuers must disclose climate information on a “comply or explain” basis. By January 2026, Large Cap Issuers will adhere to mandatory disclosure requirements, with further consultations planned by the Hong Kong Exchanges and Clearing Limited (HKEX) for listed PAEs.
Hong Kong’s approach extends beyond reporting standards. The plan includes initiatives to support sustainability assurance, develop green fintech solutions, and enhance skills to meet evolving ESG requirements. These efforts aim to promote high-quality sustainability reporting and create a robust framework for transitioning to a carbon-neutral future.
The roadmap’s transparency and strategic alignment with international standards position Hong Kong as a global leader in sustainable finance. By fostering innovative practices and stringent reporting mechanisms, the city underscores its dedication to achieving carbon neutrality and driving ESG excellence.
This landmark initiative not only advances Hong Kong’s sustainability goals but also sets a benchmark for global financial centers, emphasizing the importance of robust ESG frameworks in achieving long-term environmental and economic resilience.
Sources:
https://www.info.gov.hk/gia/general/202412/10/P2024121000243.htm
https://www.chinadaily.com.cn/a/202412/11/WS6758ebb3a310f1265a1d23ed.html
https://english.news.cn/20241211/d34af973e63246e0baf0ef8b14f26c16/c.html
