The Hong Kong government has finally unveiled its much-awaited Roadmap on Sustainability Disclosure, outlining how it will introduce fully comprehensive sustainability reporting requirements for companies. This move brings Hong Kong in line with international standards as it strives to maintain its status as a global leader in green finance.
The first major aspect of the roadmap will be the adaption of IFRS as imposed by the International Sustainability Standards Board. Some listed companies will report on a “comply or explain” basis starting next year, while large-cap companies will be mandated to disclose from 2026. The initiative is intended to create a robust sustainability reporting framework for a wide range of entities, including listed companies and regulated financial institutions such as banks, fund managers, and insurers.
The roadmap builds on Hong Kong’s vision statement on developing a sustainability disclosure ecosystem released earlier this year. That vision sought to harmonize local sustainability reporting requirements with international benchmarks. In line with the vision statement, the Hong Kong Institute of Certified Public Accountants HKICPA released exposure drafts for sustainability and climate reporting standards that closely mirror the ISSB standards. The ISSB’s framework, released in June 2023, consists of general sustainability (IFRS S1) and climate-specific (IFRS S2) standards. The standards focus on globally consistent, comparable, and decision-useful disclosures for investors.
HKICPA will finalise Hong Kong’s ISSB-aligned standards by the end of this year, with an effective implementation date of August 1, 2025. All Main Board issuers will adopt IFRS S2 Climate-related Disclosures on a “comply or explain” basis in 2025. By 2026, large-cap issuers will be required to comply mandatorily, and the Hong Kong Stock Exchange will begin consulting on broader adoption. PAEs are expected to implement the current standards no later than the year 2028, similarly, major financial institutions should also comply with such set standards by 2028.
The roadmap provides a clear timeline for transitioning to this sustainability disclosure framework, emphasizing inclusivity and preparedness. To support these efforts, the Hong Kong government has committed to introducing measures such as developing a regulatory regime for sustainability assurance, promoting green fintech, and enhancing the availability of free data tools. Expanding the Hong Kong Taxonomy for Sustainable Finance is another key aspect of the implementation strategy, providing clear definitions and guidelines for sustainable activities.
Secretary for Financial Services and the Treasury Christopher Hui stated, “As a premier international financial centre as well as a green and sustainable finance hub, Hong Kong is taking consistent steps to consolidate its competitiveness through observing international standards and best practices.”. He added that the launch of this roadmap on the full adoption of the ISSB Standards clearly points out our commitment to continuing to play a leading role in facilitating green and sustainable financing and investment for the global agenda of green transition,” he stated.
The roadmap positions Hong Kong as a proactive player in advancing sustainability in the financial sector. In full alignment with the ISSB standards, the city reaffirms its role in supporting the global green transition. It also demonstrates its readiness to meet growing investor and stakeholder demands for transparency, accountability, and climate action.
This is a major milestone for Hong Kong in its journey to be a leader in sustainable finance. The clear timeline and robust regulatory and technological support ensure a structured approach in integrating sustainability reporting into the corporate landscape. By being on par with international standards, Hong Kong hopes to attract more global investment and facilitate meaningful contributions to the broader goals of sustainability and environmental responsibility.