Hong Kong-listed firms ‘strongly’ advised to prepare for ISSB climate-disclosure demands, bourse operator says
- Issuers should get familiar with the new ISSB climate-disclosure standards, Hong Kong Exchanges and Clearing said in report on Friday
- Just over 85 per cent of 400 listed companies studied had made disclosures on three climate-specific requirements added in 2020, HKEX said
Hong Kong listed firms are “strongly” advised to get ahead of the curve on an impending expansion of required climate disclosures, even as the vast majority have met strengthened reporting requirements imposed in 2020, the city’s bourse operator said.
Among 400 companies, more than 90 per cent achieved compliance on 12 out of 15 environment, social and governance (ESG) reporting requirements implemented in 2020, while 77 to 89 per cent met the other three requirements, HKEX said. Some 2,582 firms are listed on the exchange.
Just over 85 per cent of the companies made disclosures on the three climate-specific requirements added in 2020, according to the study, which looked at ESG reports for financial years ending between June last year and March this year.
The three climate-specific requirements are identifying impactful climate-related issues, devising mitigation strategies with targets and disclosing Scope 1 and Scope 2 greenhouse-gas emissions. Scope 1 emissions are those directly generated by the company, while Scope 2 covers emissions generated through purchased energy and supplies.