The Hong Kong government has unveiled its Roadmap on Sustainability Disclosure, detailing plans to implement sustainability reporting requirements for companies. The roadmap outlines the introduction of reporting based on the IFRS Foundation’s International Sustainability Standards Board (ISSB) standards for certain listed companies on a “comply or explain” basis starting next year, with mandatory requirements for large-cap companies set to begin in 2026.

This announcement builds on the government’s earlier release of a vision statement aimed at developing a sustainability disclosure ecosystem in Hong Kong. The vision statement sought to align local sustainability reporting requirements with international standards and targeted entities such as listed companies, banks, fund managers, and insurance companies. Following this release, the Hong Kong Institute of Certified Public Accountants (HKICPA) issued exposure drafts for sustainability-related and climate-related reporting standards, fully aligned with ISSB standards. The new roadmap reaffirms that the forthcoming reporting requirements will align with the ISSB standards, which include IFRS S1 (general sustainability) and IFRS S2 (climate-related) reporting standards. The government confirmed that the HKICPA would issue the final ISSB-aligned Hong Kong Standards by the end of this year, effective August 1, 2025.

The roadmap also sets out the timeline for implementing these requirements. Starting in 2025, all Main Board issuers will report against IFRS S2 Climate-related Disclosures on a “comply or explain” basis, with large-cap issuers transitioning to mandatory reporting in 2026. The Hong Kong Exchanges and Clearing Limited (HKEX) will then consult on requiring sustainability reporting for all listed publicly accountable entities (PAEs), with full implementation anticipated by 2028. Significant financial institutions will also need to adopt the standards by that year.

In addition to the reporting timeline, the roadmap outlines measures to support the transition, including establishing a regulatory framework for sustainability assurance, promoting green fintech development, providing free data tools, and expanding the Hong Kong Taxonomy for Sustainable Finance.

Stay ahead in the world of sustainability compliance with Global PCCS, where expert insights meet the latest regulations. Unlock a future where compliance drives sustainability and your business thrives in a greener, regulated landscape.