HKEX Adopts ISSB Standards for Climate-Related Disclosures

HKEX Adopts ISSB Standards for Climate-Related Disclosures

By Prathamesh 6 May, 2024
news

Hong Kong’s Stock Exchange (HKEX) recently announced that it will adopt the International Sustainability Standards Board (ISSB) standards for climate-related disclosures. This announcement is accompanied by the publication of the Exchange’s consultation conclusions on enhancing climate-related disclosures under its environmental, social, and governance (ESG) framework.

The Exchange received broad support from diverse stakeholders for the proposed sustainability reporting requirements. Building upon this feedback, HKEX will implement new reporting requirements aligned with IFRS S2 Climate-related Disclosures (IFRS S2) from the beginning of the 2025 reporting year. The requirements will be based on IFRS S2 with proportionality and scaling-in measures to address reporting challenges.

The new reporting requirements, part of Hong Kong’s broader roadmap for adopting the ISSB Standards, are a strategic decision designed to align local sustainability disclosure standards with international best practices. By adopting the globally recognised ISSB standards, HKEX aims to enhance the attractiveness and competitiveness of Hong Kong’s capital markets for international investors with an interest in sustainability information. Use of a globally applied standard will also help ensure the internatonal comparability of information reported under the requirement.

Implementation will start from 1 January 2025. It includes a phased approach for different categories of issuers, which aims to support companies in meeting the new requirements within a reasonable timeframe for compliance.

To find out more details please visit : https://www.xbrl.org/