ESG: Regulations Summary

The Exchange wants to impose additional climate-related disclosures in line with the International Sustainability Standards Board (ISSB) Climate Standard1 and require all issuers to include information about climate change in their ESG reports. The ISSB Climate Standard outlines comprehensive climate disclosures and expands on the TCFD guidelines' core ideas. The suggestions represent a substantial step towards fulfilling the Hong Kong Green and Sustainable Finance Cross-Agency Steering Group's3 pledge to require TCFD-aligned disclosures by 2025. The Exchange proposes interim provisions4 for some disclosures (such as financial effects of climate-related risks and opportunities, scope 3 emissions, and certain cross-industry metrics) for the first two reporting years after the effective date of January 1, 2024, taking into account the issuers' readiness and their concerns.