Hong Kong releases climate reporting standards

December 17th, 2024

Hong Kong’s Institute of Certified Public Accountants (HKICPA) has published new climate reporting standards.

Both new standards, HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures, are fully aligned with the ISSB Standards.

The standardised framework aims to enhance the consistency and comparability of corporate sustainability reports.

The reporting standards closely follow the Hong Kong government's recent release of the Roadmap Sustainability Disclosure, which outlined details of its plan to implement sustainability reporting requirements for companies.

The new roadmap adopts a “comply or explain” basis in 2025, as all main board issuers will be required to begin reporting against the IFRS S2 Climate-related Disclosures.

Large publicly accountable entities are set to begin on a required basis in 2026, with a predicted date for all publicly listed accountable entities to begin no later than 2028.

President of the HKICPA, Edward Au, said that these releases mark a memorable moment for Hong Kong’s sustainability journey.

“The HKFRS SDS are fully aligned with the lSSB Standards, and this is critical to maintaining and enhancing Hong Kong’s competitiveness in international capital markets,” said Au.

The move comes as other countries have been expanding their reporting obligations. For example, in October, Canada announced its plans to set mandatory climate-related disclosures by 2050.

Large federally incorporated private companies were proposed two sustainable finance initiatives, aimed at achieving the net zero goal.

Similarly, Switzerland proposed a broadening of the scope of companies subjected to mandatory climate reporting in December.

Following the launch of consultation, The Swiss Federal Council looked to expand the scope of reporting required companies, including those with at least 250 employees.

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

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