HKEX to require climate reporting from all issuers from 2024


All issuers listed on the Hong Kong Stock Exchange (HKEX) will be required to provide climate-related disclosures beginning January 2024.

According to ESG Today, the climate disclosures need to be aligned with the International Sustainability Standards Board’s (ISSB) upcoming Climate Standard.

The new rules – which were released alongside a consultation paper into the proposals – would represent a substantial increase in the reporting provided by many firms, in areas such as Scope 3 emissions, or those that arise through the value chain outside of a businesses direct control.

ESG Today added that HKEX’s proposals include interim provisions, allowing issuers to provide quantitative disclosures for the first two years for some disclosures such as Scope 3 emissions, the financial effects of climate-related risks and opportunities, and certain cross-industry metrics.

Climate-related disclosure requirements under the new proposals cover a vast range of areas including companies’ governance of climate-related risks and opportunities, strategy topics ranging from the disclosure of material risks and opportunities and transition plans to scenario analysis-based climate resilience and the anticipated financial effects of climate-related risks and opportunities. T

In addition, the proposed rules would also mandate disclosure of metrics and targets including Scope 1, 2, and 3 emissions, as well as amount and percentage of assets vulnerable to transition and physical risks or aligned with climate-related opportunities.

HKEX head of listing Katherine Ng said, “With climate change being a global concern and focus, investors are demanding more information on how climate issues and related policy change could impact an issuer’s assets, business operations and financials. Our proposals aim to accelerate the building of resiliency and the sustainability journey of our issuers, further strengthening Hong Kong’s position as a trusted and attractive venue for capital raising.”

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