Authorised IMDS & CDX Training & Consulting partner for
The Stock Exchange of Hong Kong announced that all listed companies will be obliged to start making mandatory disclosures on climate change in accordance with the new reporting rules of the International Sustainability standards Board (ISSB) of the IFRS Foundation, starting with the 2025 reporting year for Scope 1 and 2 emissions.
The announcement follows after the exchange released a survey last year that suggested greater disclosures for businesses about climate change. Adopting the consultation ideas resulted from the exchange reporting that it “received broad-based support for its proposals.”
The choice was made in response to a statement released by the Hong Kong government last month outlining its strategy for creating a thorough ecosystem for sustainability disclosure. This strategy includes collaborating with stakeholders and regulators to create a roadmap for the appropriate adoption of ISSB standards and to create locally relevant sustainability reporting standards.
All exchange issuers will have to start disclosing their Scope 1 and 2 GHG emissions for reporting periods starting on January 1, 2025, in accordance with the new regulations.
In addition to providing additional disclosures, LargeCap issuers—those included in the Hang Seng Composite LargeCap Index, which represent 80% of the HSCI composite’s market capitalization—and other Main Board issuers will also be obliged to report on Scope 3 value chain emissions on a comply-or-explain basis beginning in 2025. The following year, LargeCap issuers will be required to provide these disclosures on a mandatory basis. On a voluntary basis, small and mid-sized “GEM” issuers will be allowed to disclose information beyond Scope 1 and 2 emissions.