On 19 April 2024, the Stock Exchange of Hong Kong Limited (the “Exchange”) published the consultation conclusion (“Conclusion Paper”) on proposals to enhance climate-related disclosures under the environmental, social and governance (“ESG”) framework.

To maintain Hong Kong’s competitiveness as a green and sustainable international financial centre and to further strengthen the Exchange’s position as a trusted venue for capital raising, the Exchange published a consultation paper on 14 April 2023 seeking views on proposals to amend its ESG reporting framework (the “ESG Code”), predominantly set out in Appendix C2 to the Listing Rules (for a summary, please refer to our Capital Markets Update Issue 2023-4). The consultation period ended on 14 July 2023.

After considering the latest developments and market feedback, the Exchange adopted all proposals with certain modifications to better reflect IFRS S2 to the maximum extent possible. Highlights of the Conclusion Paper are summarised below:

  1. New climate-related disclosure requirements added to the ESG Code
  2. Phased Approach to report on New Climate Requirements in the issuer’s ESG Report
  3. Implementation Reliefs on certain climate-related disclosures
  4. Next steps in ESG reporting developments 

We hope you find this publication useful and informative. If you have any comments or questions, please contact us or visit our ISSB Sustainability Reporting Resource Centre for the latest trends and practical guidance on how to get ready for the new standards.