Hong Kong Exchange Explores Mandatory ISSB Disclosures

Hong Kong Exchange Explores Mandatory ISSB Disclosures

By Prathamesh 28 April, 2023
news

The Hong Kong Stock Exchange (HKEX) has proposed making climate related disclosures mandatory for all issuers, requiring reporting using the International Sustainability Standards Board (ISSB) standards, from 1 January 2024.

The HKEX published a consultation paper this week that seeks feedback from market participants on its proposals to enhance climate-related disclosures under its environmental, social and governance (ESG) framework. The exchange is proposing to mandate all issuers to make climate-related disclosures in their ESG reports and to introduce new climate-related disclosures aligned with the ISSB standards.

The Hong Kong Green and Sustainable Finance Cross-Agency Steering Group already committed the HKEX to mandating Task Force on Climate-related Financial Disclosures (TCFD) recommendations by 2025. As the ISSB standards are based on the principles of the TCFD, adopting these new standards is a natural next step for the HKEX.

The proposals include interim provisions to exempt companies from certain, more burdensome disclosures such as Scope 3 Emissions for the first two reporting years, in order to facilitate and ease implementation.

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