HKEX proposal for mandatory climate disclosures gets nod from businesses, but not without concerns over timeline, scope
- Businesses agree the move will help the city maintain its status as a global financial centre, according to feedback during a consultation period
- Timelines for some disclosures, especially of scope 3 emissions, will be quite challenging for many companies, says CEO of listed-company chamber
Representatives of Hong Kong’s business sector agree with the stock exchange’s plan to make climate-related disclosures mandatory and aligned with international standards – but not without concerns.
The business community agrees that the move will help the city maintain its competitiveness as a global financial centre, according to feedback from a three-month consultation period that ended on Friday. But concerns exist around the level of ambition, as well as the challenges companies will face achieving compliance.
During the consultation, Hong Kong Exchanges and Clearing (HKEX) sought market feedback on enhancing climate-related disclosures under its environmental, social and governance (ESG) framework, including making such disclosures mandatory, as opposed to the current “comply or explain” basis.
“These proposed enhancements will not only help our issuers achieve greater climate-related risk management, but also strengthen their resilience and enhance the long-term sustainability of Hong Kong’s markets,” Katherine Ng, head of listing at HKEX, said at an event organised by the bourse operator’s ESG academy on Thursday.