The Hong Kong Government has unveiled a roadmap for sustainability disclosures, mandating publicly accountable entities (PAEs) to fully adopt the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards) by no later than 2028.
The Hong Kong Institute of Certified Public Accountants (HKICPA) is currently aligning the development of the Hong Kong Standards with the ISSB Standards.
Financial Services and the Treasury secretary Christopher Hu said: “This roadmap provides a transparent and well-defined pathway on sustainability reporting for PAEs in Hong Kong.
“The Financial Services and the Treasury Bureau (FSTB) in collaboration with financial regulators and stakeholders will continue to support the pragmatic implementation of the Hong Kong Sustainability Disclosure Standards (HKS) through enhancing capacity building and promoting the use of technological solutions.”
Following a supportive public consultation on the Exposure Drafts, HKICPA is on track to finalise the HKS by the end of this year, aiming for an implementation date of 1 August 2025.
Starting from 1 January 2025, all main board issuers will be required to disclose climate-related information based on the ‘comply or explain’ principle, modelled on the International Financial Reporting Standards S2 Climate-related Disclosures.
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By GlobalDataLarge Cap Issuers, identified as constituents of the Hang Seng Composite LargeCap Index, will be mandated to comply with these new climate requirements from January 2026.
The Hong Kong Exchanges and Clearing plans to seek market feedback in 2027 regarding the mandatory sustainability reporting against the HKS for listed PAEs, with an anticipated effective date of 1 January 2028.
The roadmap also includes a proportionate approach for financial institutions that are non-listed PAEs to apply the HKS by the 2028 deadline.
The roadmap further details Hong Kong’s strategy to create a robust ecosystem supporting sustainability disclosures.
This encompasses areas such as sustainability assurance, data and technology, and skills and competencies.
The Accounting and Financial Reporting Council (AFRC), in collaboration with financial regulators and stakeholders, will advance Hong Kong’s regulatory regime for sustainability assurance and promote high-quality assurance practices in line with international standards.
Members of the Green and Sustainable Finance Cross-Agency Steering Group are committed to enhancing sustainability disclosures and data quality through various initiatives.
Both the Steering Group members and HKICPA will advocate for ISSB Standards alignment and support capacity-building efforts at local, regional, and international levels.
This roadmap was formulated with backing from the steering group, through a dedicated working group.
In November 2024, HKICPA announced the election of Edward Au as its new president.
