Hong Kong has unveiled its Roadmap on Sustainability Disclosure, signaling a major step toward aligning its corporate sustainability reporting with global ESG standards. Beginning in 2025, listed companies will adopt the IFRS S2 Climate-related Disclosures on a “comply or explain” basis, with mandatory compliance for large-cap firms starting in 2026.

The roadmap, rooted in the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2 standards, reflects Hong Kong’s commitment to enhancing sustainability transparency and advancing its carbon-neutral strategy. By 2028, all publicly accountable entities (PAEs) and significant financial institutions must comply with the new standards.

This initiative builds on the government’s earlier Vision Statement for developing a robust sustainability disclosure ecosystem. The Hong Kong Institute of Certified Public Accountants (HKICPA) has played a key role, issuing exposure drafts fully aligned with ISSB standards. Finalized ISSB-aligned Hong Kong standards are expected by the end of this year, taking effect on August 1, 2025.

To facilitate implementation, Hong Kong plans to establish a regulatory framework for sustainability assurance, promote green fintech, and provide free data tools. Expanding the Hong Kong Taxonomy for Sustainable Finance is also a priority.

The roadmap underscores Hong Kong’s position as a global leader in ESG reporting, ensuring local businesses meet international investor expectations. By mandating detailed disclosures on climate-related risks and sustainability impacts, Hong Kong aims to foster transparency and accountability while advancing its carbon-neutral strategy.

As the implementation timeline unfolds, these measures will drive sustainable practices across listed companies and financial institutions, positioning Hong Kong at the forefront of global efforts to integrate ESG into corporate governance.

Sources:

https://www.esgtoday.com/hong-kong-to-require-ifrs-aligned-sustainability-reporting-starting-in-2025/

https://www.chinadailyhk.com/hk/article/599859

https://www.hkex.com.hk/News/Regulatory-Announcements/2024/240419news?sc_lang=en

https://www.commercialriskonline.com/hong-kong-publishes-sustainability-standards-to-align-with-ifrs/