The Hong Kong government launched its sustainability disclosure roadmap on 10 December 2024, marking a significant step forward for ESG reporting in Hong Kong. It outlines a phased approach to implementing new ESG reporting standards.
From 1 January 2025, all Main Board issuers must disclose under the New Climate Requirements, based on IFRS S2 Climate-related Disclosures. This will initially follow a “comply or explain” approach.
The plan targets to align Hong Kong’s ESG reporting standards with the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards) by 2028. Large-cap issuers, specifically those in the Hang Seng Composite LargeCap Index, will face mandatory disclosure requirements from 1 January 2026.
The HKEX plans to consult the market in 2027 to finalise mandatory sustainability reporting against the Hong Kong Standards for listed PAEs, with implementation set for 1 January 2028.
The Hong Kong Institute of Certified Public Accountants (HKICPA) is creating local standards that align with the ISSB Standards. The Hong Kong Sustainability Disclosure Standards are set to be finalised by year-end. It will take effect on 1 August 2025.
The ESG reporting Hong Kong roadmap extends beyond reporting requirements to develop a robust ecosystem for sustainability disclosures. At the same time, efforts will also focus on improving data quality and accessibility through green fintech initiatives, the rollout of free data tools, and the expansion of the Hong Kong Taxonomy for Sustainable Finance.
Capacity-building initiatives will enhance skills and competencies locally and regionally to ensure alignment with ISSB Standards.
Secretary for Financial Services and the Treasury, Christopher Hui, highlighted that this roadmap strengthens Hong Kong’s role as a leading international financial centre. It also positions the city as a hub for green and sustainable finance.
By adopting these international standards, Hong Kong intends to lead in facilitating green financing and investment.
This strategic move aligns Hong Kong with global sustainability trends and positions the city at the forefront of sustainable finance.
As the HKEX sustainability disclosure requirements unfold, it could drive greater accountability and sustainability in the region.
