Climate Change: Hong Kong’s bourse proposes tougher climate and sustainability disclosures for listed firms to align with international standards
- The proposals follow a review of existing disclosure rules for environment, social and governance (ESG) matters
- Earlier this month the ISSB said it will issue a finalised set of climate and sustainability reporting standards by June 30
Hong Kong’s bourse is proposing tougher climate and sustainability risks and opportunities disclosures by listed firms, to keep up with international standards and maintain the city’s competitiveness as a financial centre.
The proposals, which follow a review of existing disclosure rules for environment, social and governance (ESG) matters, will encourage capital allocation towards a more sustainable future, Hong Kong Exchanges and Clearing said in a consultation paper on Friday.
“The proposals … reflect our commitment to promoting sustainability by preparing our issuers to get ready for the climate-related reporting requirements based on the ISSB climate standard,” it said.
Earlier this month, the International Sustainability Standards Board (ISSB), a new body set up in late 2021 to consolidate various ESG reporting standards, said it will issue a finalised set of climate and sustainability reporting standards by June 30.
“Hong Kong’s early adoption of climate-related corporate reporting requirements will consolidate its position as a leading green and sustainable finance hub within the region and globally,” said Julia Leung, CEO of the Securities and Futures Commission, in a statement on Friday.
“We have been working closely with HKEX to adopt a balanced approach which aims to provide appropriate flexibility for listed companies whilst promoting relevant, consistent and comparable disclosures to investors,” said Leung.