On 14 April 2023, the Stock Exchange of Hong Kong Limited (the “Exchange”) published a consultation paper (“Consultation”) seeking market feedback on proposals to enhance climate-related disclosures under the environmental, social and governance (“ESG”) framework. The deadline for submissions is 14 July 2023.

To maintain Hong Kong’s competitiveness as an international financial centre, the Exchange conducted a comprehensive review of its ESG framework to ensure that it continues to keep pace with international developments, continues to reflect stakeholders’ expectations and facilitates capital allocation towards a more sustainable future.

The key proposals in this Consultation are summarised as below:

  1. Mandate all issuers to make climate-related disclosures in their ESG reports for the financial year commencing on or after 1 January 2024
  2. Introduce new climate-related disclosures under four core pillars which aligned with the ISSB Climate Standard
    ▪  Governance
    ▪  Strategy
    ▪  Risk management
    ▪  Metrics and targets
  3. Provide interim provisions on certain climate-related disclosures for the first two reporting years following the effective date of 1 January 2024

We hope you find this publication useful and informative. If you have any comments or questions, please contact us or visit our ISSB Sustainability Reporting Resource Centre for the latest trends and practical guidance on how to get ready for the new standards.