The government on Tuesday rolled out a roadmap for Hong Kong to align its sustainability disclosure requirements with international standards. It says publicly accountable entities, including banks, security brokers and all regulated financial institutions, are required to adopt the International Financial Reporting Standards - Sustainability Disclosure (ISSB) Standards by 2028. The Hong Kong Institute of Certified Public Accountants will release local standards that align with ISSB Standards by the end of this year, with an effective date of August 1 next year. Starting from January 1, 2025 major listed companies will be required to adopt a “comply or explain” approach for their disclosures related to the climate requirements in the ISSB Standards. Those listed in the Hang Seng Composite LargeCap Index will also have to disclose their compliance with climate requirements from January 1, 2026. Hong Kong Exchanges and Clearing will consult the market in 2027 on mandating sustainability reporting against the Hong Kong Standards for listed publicly accountable entities with an expected effective date of January 1, 2028, under a proportionate approach. Additionally, certain non-listed financial institutions that carry significant weight will also need to adopt ISSB Standards no later than 2028. Secretary for Financial Services and the Treasury Christopher Hui said the SAR is taking consistent steps to boost its competitiveness as a premier financial centre through observing international standards. In a statement, he added that the roadmap’s launch highlights the government's dedication to promoting green and sustainable financing and investment, while also laying out a clear framework on sustainability reporting for financial institutions.
