Exchange publishes conclusions on climate disclosure requirements
The Stock Exchange of Hong Kong Limited (HKEx) has published the conclusions to its consultation on enhancing climate-related disclosures under its environmental, social and governance (ESG) framework, effective from 1 January 2025. These requirements are based on the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (ISSB Standards) published by the IFRS Foundation's International Sustainability Standards Board in June 2023.The new climate requirements will be implemented in phases, with different disclosure obligations and timelines for Main Board issuers, Hang Seng Composite LargeCap Index constituents, and Growth Enterprise Market (GEM)-listed issuers. It covers four core pillars: governance, strategy, risk management, and metrics and targets related to climate-related risks and opportunities.
The HKEX’s Environmental, Social and Governance Reporting Code (ESG Code) will also introduce implementation relief measures, such as ‘reasonable information relief’ and ‘capabilities relief’, to address reporting challenges for some issuers.
This is an interim step towards the development of a comprehensive sustainability and climate reporting regime in Hong Kong, which will involve the adoption of the ISSB Standards and the setting of local sustainability reporting standards by the Hong Kong Institute of Certified Public Accountants.
For more information, please visit https://www.hkex.com.hk/News/Regulatory-Announcements/2024/240419news?sc_lang=en
National corporate ESG disclosure standard from China
In a significant move towards sustainability, China has announced plans to introduce nationwide corporate environmental, social, and governance (ESG) disclosure standards by 2030. This comes as China's three major stock exchanges - The Shanghai Stock Exchange, The Shenzhen Stock Exchange, and The Beijing Stock Exchange - have issued new guidelines mandating ESG reporting for listed companies.The new guidelines require larger-cap and dual-listed companies to begin mandatory ESG disclosures starting in 2026. They cover a wide range of sustainability-related topics, including carbon emissions, circular economy practices, pollution prevention, and contribution to national development goals. Smaller and medium-sized enterprises are currently encouraged to report voluntarily.
This regulatory push reflects China's commitment to improving corporate transparency and aligning businesses with the country's green development agenda. The guidelines are designed to enhance standardisation and quality of ESG reporting among Chinese firms. Companies will be required to disclose information on governance, strategy, risk management, and performance metrics related to sustainability.
While the implementation timeline provides flexibility for firms to prepare, the new requirements mark a significant step forward in China's efforts to drive sustainable practices in the corporate sector. As global focus on ESG intensifies, this move is expected to improve Chinese companies' access to domestic and international capital markets by demonstrating their environmental and social responsibility.
For more details, please visit https://www.china-briefing.com/news/chinas-stock-exchanges-announce-esg-reporting-guidelines-for-listed-companies/
Exam launching to certify ESG professionals tailored for Exchange’s needs
The Chamber of Hong Kong Listed Companies (CHKLC) is launching the ‘ESG Certified Professional Examination’ - the first public exam in Hong Kong that is specifically tailored to the ESG disclosure requirements of HKEx.The exam aims to establish a recognised qualification for ESG practitioners to ensure they have the professional competence to meet HKEX's requirements. The exam content will cover HKEX's latest ESG disclosure framework, including the climate-related disclosure standards issued by ISSB formed after COP26 in 2021.
The exam will assess the practitioners' proficiency and knowledge in applying the exchange's rules and regulations on ESG. The exam syllabus will also include relevant public information from the Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board in 2015.
The goal is to raise the professional standards of ESG practitioners, meet the market demand for ESG talent in Hong Kong, and help listed companies adapt to evolving social and environmental changes. Through this rules-based certification exam, the ESG market in Hong Kong will become more professionalised.
For more information, please visit https://hk.finance.yahoo.com/news/hong-kong-body-launch-exam-093000818.html