ISSB Alignment: Publicly accountable entities (PAEs) in Hong Kong must fully adopt ISSB-aligned sustainability disclosure standards by 2028.
Mandatory Reporting: Large-cap issuers must comply with new climate disclosure requirements starting January 2026, with broader mandates to follow by 2028.
Ecosystem Development: Hong Kong is investing in assurance, green fintech, and skills development to support its sustainability reporting framework.
The Story:
The Hong Kong government unveiled a roadmap to implement the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards) across publicly accountable entities (PAEs) by 2028. This plan positions Hong Kong as a leader in green and sustainable finance while aligning with global standards.
“As a premier international financial center and green finance hub, Hong Kong is consolidating its competitiveness through observing international standards and best practices,” said Christopher Hui, Secretary for Financial Services and the Treasury.
Key Milestones:
Adoption Timeline:
The Hong Kong Institute of Certified Public Accountants (HKICPA) will issue final Hong Kong Standards, aligned with ISSB Standards, by the end of 2024.
Large-cap issuers must disclose climate-related information under the “comply or explain” model by January 2026.
All PAEs will adopt the Hong Kong Standards by 2028.
Mandatory Climate Reporting:
From January 2026, Hang Seng Composite LargeCap Index issuers must meet new mandatory climate reporting requirements. The Hong Kong Exchanges and Clearing Limited (HKEX) will consult on broader mandates in 2027.
Ecosystem Support:
Sustainability Assurance: The Accounting and Financial Reporting Council (AFRC) will develop a regulatory framework for high-quality assurance aligned with international standards.
Data & Technology: Green fintech, free data tools, and an expanded Hong Kong Taxonomy for Sustainable Finance will enhance reporting quality.
Capacity Building: Efforts will focus on aligning regional and local skills with the ISSB Standards.
Why It Matters:
Hong Kong’s roadmap not only mandates sustainability reporting but also invests in the infrastructure and skills needed to support the transition. This initiative reflects Hong Kong’s ambition to lead in sustainable finance while helping PAEs meet global climate goals.
“The launch of this roadmap highlights our commitment to facilitating green and sustainable financing for the global agenda of green transition,” Hui added.
Bottom Line:
By aligning with international standards and building a comprehensive sustainability ecosystem, Hong Kong is positioning itself as a leader in sustainable finance and corporate accountability.
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