Hong Kong Stock Exchange leads with new climate disclosure standards

The Stock Exchange of Hong Kong, a subsidiary of HKEX has unveiled its new climate-related disclosure requirements.

These requirements are part of the Exchange’s updated environmental, social, and governance (ESG) framework. The decision comes after a consultation phase where the Exchange received 115 responses from a diverse group of stakeholders. The feedback overwhelmingly supported the introduction of enhanced disclosure mandates.

The new framework aligns closely with the IFRS S2 Climate-related Disclosures as outlined by the International Financial Reporting Standards (IFRS), echoing the Hong Kong Government’s commitment to a robust sustainability disclosure ecosystem. HKEX Head of Listing, Katherine Ng, emphasized the market’s strong support for these standards and highlighted the Exchange’s intention to implement these changes progressively. This phased approach aims to aid listed companies in adapting to the new requirements without excessive pressure, ensuring compliance within a practical timeframe.

Katherine Ng noted, “With a strong market mandate, we at HKEX are pleased to be among the world’s first exchanges to enhance the climate-related disclosure requirements based on IFRS S2. We are also adopting a phased approach and implementation reliefs to support listed companies to meet the new requirements without undue burden and within a reasonable timeframe.”

Additionally, these new climate requirements are part of a broader strategy to incorporate the International Sustainability Standards Board’s (ISSB) guidelines, which are crucial to Hong Kong’s roadmap for local sustainability reporting standards. This strategy is expected to bolster Hong Kong’s capital markets by enhancing their attractiveness and competitive edge in the global arena.

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