Hong Kong’s Latest Sustainability Regulations

HKFRS Key dates

GreenCo understands that navigating the publication of a new sustainability reporting standard can be confusing. Therefore, our team always pays the greatest attention to stay informed of the latest sustainability news and regulations, ensuring a comprehensive understanding and timely delivery of relevant information and important dates to our clients and the interested stakeholders.

To support the HKSAR Government’s Climate Action Plan 2050 and other green initiatives, the Hong Kong Institute of Certified Public Accountants (HKICPA) has adopted international standards, which are IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures (ISSB Standards), into the sustainability disclosure standards in Hong Kong. Consequently, HKICPA has drafted new Hong Kong Standards with consultation conducted. On 12 December 2024, HKICPA published HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures.

Key Dates of HKFRS Sustainability Disclosure Standards

Both HKFRS S1 and S2 will be in effect on 1 August 2025, and large publicly accountable entities (PAEs), including large listed issuers and non-listed financial institutions carrying a significant weight, will need to fully comply with the HKFRS S1 and S2 Standards no later than 2028.

Timeline shows several major events and key dates

key dates

Key Date Event
2024 December HKICPA published HKFRS S1 and S2
2025 January 1 Main Board issuers disclose the New Climate Requirements on a “comply or explain” basis 1
2025 August 1 HKFRS S1 and S2 will be in effect
2026 January 1 Large Cap Issuers will disclose the New Climate Requirements on a mandatory basis 1
2027 Hong Kong Exchanges and Clearing Limited (HKEX) will launch market consultation on mandatory sustainability reporting in accordance with HKFRS S1 and S2
2028 HKFRS S1 and S2 will apply to large PAEs

1 For more details on the New Climate Requirements, please visit: https://greenco-esg.com/esg-reporting-hong-kong-exchange/

Despite the publication of HKFRS S1 and S2, the existing sustainability or climate-related disclosure rules and regulations issued by HKEX and other authorities are still in effect. Entities listed on HKEX are required to continue complying with the extant listing rules and following the corresponding guidelines until 1 August 2025 and unless there are changes on the mandatory use.

At GreenCo, we are committed to helping companies prepare tailored sustainability reports in compliance with various standards and guidelines. Should you wish to explore how GreenCo empowers clients to drive sustainable development and become the leaders among your peer companies, contact us today!

Further Reading

For more details on the HKFRS S1, please visit this website.

For more details on the HKFRS S2, please visit this website.

About GreenCo

GreenCo is a professional ESG advisory firm accredited with ISO 9001 in ESG Reporting and Climate Policy Advisory Services. Established in 2016, we were born to tackle ESG and climate risk management challenges. GreenCo has a professional team consists of talents with multiple backgrounds with

  • PhD
  • Practitioner Member of the Institute of Environmental Management and Assessment (IEMA)
  • CFA (the CFA Institute) and Certificate in ESG Investing
  • EFFAS Certified ESG Analyst (CESGA)
  • Completion of Certified GRI Training Programme
  • Certified Public Accountant (for assurance in accordance with ISAE 3000)
  • Member of Global Association of Risk Professionals
  • Master’s degree in envirnomental science

GreenCo has solid track record in ESG advisory for over 60 listed companies in Hong Kong, Mainland China, Singapore and Korea, covering all industries under the Hang Seng Industry Classification System.

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