HK to align with global sustainability standards

Hong Kong aims to blaze a trail by aligning local sustainability disclosures with international standards, reinforcing its leading position on the global sustainable finance map.

Speaking at the One Earth Summit which opened yesterday, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the vision “is to be among the first jurisdictions” to align the local sustainability disclosure requirements with The International Sustainability Standards Board or ISSB Standards.

The Hong Kong Institute of Certified Public Accountants will be tasked to align the city’s sustainability reporting requirements with the ISSB’s International Financial Reporting Standards – Sustainability Disclosure Standards.

A roadmap to provide a transparent and well-defined pathway for sustainability reporting for local businesses is targeted to be launched this year.

Chief Executive John Lee Ka-chiu said the city can provide an environment for green finance to grow robustly, and Financial Secretary Paul Chan Mo-po said the vision statement aims to keep the promise of aligning with global standards.

While the government strives to showcase its commitment to strengthening its competitiveness, the Securities and Futures Commission has admitted that it has noticed concerns in the market about the lack of environmental, social and governance standards.

And Hong Kong Exchanges and Clearing (0388), which was to make climate-related disclosure mandatory this year, has deferred its implementation to 2025 amid the lack of data and a sustainability ecosystem.

Hui also said that Hong Kong will launch a scheme to provide early-stage funds, to support green financing technologies in the first half of the year.

Hong Kong-listed firms and financial institutions will be asked first to meet local standards for sustainability disclosures.

Meanwhile, Peter Lee Ka-kit, co-chairman of Henderson Land Development (0012) and The Hong Kong and China Gas Company (0003), said the city must speed up its decarbonization drive.

World Economic Forum founder Klaus Schwab told delegates via video link that funds for climate and natural transformation are projected to increase by more than US$3 trillion (HK$23.4 trillion) a year, while the current size of the global impact investment market is estimated to be just over US$1 trillion.

The summit is being organized by the Institute of Sustainability and Technology.