Hong Kong Sets the Stage for Sustainability with New Disclosure Roadmap

On December 10, Hong Kong took a big leap toward shaping its future as a global leader in green finance by unveiling a new roadmap for sustainability disclosure. The plan outlines how the city will guide publicly accountable entities (PAEs) toward adopting the International Financial Reporting Standards - Sustainability Disclosure Standards (ISSB Standards), setting a clear path to full implementation by 2028.

Christopher Hui, the Secretary for Financial Services and the Treasury, emphasized Hong Kong’s ambition to maintain its role as a premier international financial hub while embracing sustainability.

“Hong Kong has long been a center of financial excellence. Now, we’re making it clear that we are equally committed to sustainability,” Hui said. “This roadmap signals our dedication to advancing green finance and supporting the global green transition agenda. It’s a step that will help Hong Kong solidify its leadership in sustainable investment and financing.”

The roadmap sets out a timeline that will see large PAEs gradually align with the ISSB Standards. The Hong Kong Institute of Certified Public Accountants (HKICPA) is spearheading the creation of the Hong Kong Standards, ensuring they’re fully aligned with the global ISSB guidelines. After a public consultation that showed strong support, the HKICPA aims to finalize the standards by the end of this year, with the new rules set to take effect in August 2025.

Important and critical highlights of the roadmap include:

• Mandatory Climate Disclosures: Beginning January 1, 2025, all Main Board issuers will need to disclose climate-related data based on the ISSB’s S2 standards. For larger companies, those listed on the Hang Seng Composite LargeCap Index, this will become mandatory starting January 1, 2026.
• Sustainability Reporting for Listed Companies: In 2027, Hong Kong Exchanges and Clearing Limited (HKEX) will begin consulting on mandatory sustainability reporting for listed PAEs, with these rules expected to take effect in January 2028. The approach will consider the size and impact of companies, making sure it’s fair and proportionate.
• Financial Institutions: Financial institutions that are non-listed PAEs will also need to comply with the Hong Kong Standards by 2028, as outlined by the relevant financial regulators.

Beyond just disclosure, the roadmap also emphasizes the development of a robust ecosystem to support the process. This includes efforts around sustainability assurance, data and technology, and building the skills needed for effective implementation.

1. Sustainability Assurance: The Accounting and Financial Reporting Council (AFRC) will work closely with regulators to create a strong framework for sustainability reporting, adopting international standards to ensure transparency and reliability.
2. Data and Technology: The Green and Sustainable Finance Cross-Agency Steering Group is committed to enhancing the quality of sustainability data and increasing transparency. This includes developing green fintech, rolling out free tools, and expanding the Hong Kong Taxonomy for Sustainable Finance.
3. Skills and Competencies: In partnership with the HKICPA, the Steering Group will focus on capacity building to ensure Hong Kong’s financial professionals are well-prepared for the evolving landscape of sustainability reporting—both locally and globally.

The roadmap was created with the input of a dedicated working group co-led by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC), along with other key players such as the Hong Kong Monetary Authority, the Insurance Authority, and the HKEX.

By setting this roadmap into motion, Hong Kong is not only positioning itself as a leader in sustainability disclosure—it’s laying the groundwork for the future of green finance in Asia. The roadmap sets a clear vision for the city to play a pivotal role in global efforts to combat climate change, while also providing local companies with the tools and guidelines they need to thrive in a more sustainable future.

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