The vision statement follows a public commitment from the Hong Kong Government in October 2023 to develop a roadmap for the adoption of the ISSB standards. In the vision statement, the FSTB proposes a holistic approach in developing the Hong Kong sustainability disclosure standards, including the following key features:

• Coverage of all financial services sub-sectors
• Phased implementation
• Sustainability assurance to enable credible implementation
• Capacity building to support the industry and companies
• Use of technological solutions, including a Climate and environmental risk questionnaire for non-listed companies and small and medium enterprises and Greenhouse gas emissions calculation and estimation tools

The roadmap is expected in 2024 and will be prepared by a dedicated working group. Assuming the role of the sustainability reporting standard-setter, the Hong Kong Institute of Certified Public Accountants (HKICPA) will develop the standards as well as complementary application and implementation guidance. In a statement on its website, the HKICPA welcomed the FSTB vision statement.

The vision statement is available on the Hong Kong Government website.

Note: On 19 April 2024, the Stock Exchange of Hong Kong published conclusions to its consultation on the enhancement of climate-related disclosures under its environmental, social and governance (ESG) framework. The Exchange noted broad-based market support for this enhancement but agreed to modify its proposals to reflect IFRS S2 more closely. The new climate requirements will be phased in from 2025. The Exchange has also published implementation guidance that includes references to the relevant principles in IFRS S1 to assist issuers’ compliance with the new climate requirements. Please click to access the press release, the conclusions and the implementation guidance on the Hong Kong Exchanges and Clearing Limited website.

A Deloitte publication discusses the conclusions.