Sustainability Disclosure Ecosystem
The Hong Kong government and financial regulators issues a declaration plan to establish the sustainability disclosure ecosystem, aiming to strengthen Hong Kong’s development in green finance and sustainable finance.
The declaration mentioned that accurate information disclosure is an important element of green and sustainable finance. To achieve Hong Kong’s 2050 carbon neutrality goal, various stakeholders need to improve Hong Kong’s sustainability disclosure ecosystem.
Related Post: Hong Kong Releases Sustainable Finance Work Plan
Sustainability Disclosure Ecosystem Development
To build the sustainability disclosure ecosystem, the Hong Kong government and financial regulators plan to take the following measures:
- Establish sustainable disclosure targets. Hong Kong plans to become one of the first jurisdictions to apply relevant standards of the International Sustainability Standards Board (ISSB) to local sustainability disclosures to demonstrate Hong Kong’s leadership in sustainable finance to international investors and strengthen the competitiveness of listed companies.
- Appoint Hong Kong’s sustainable disclosure rule-maker. The Hong Kong government plans to appoint the Hong Kong Institute of Certified Public Accountants as the developer of sustainable disclosure rules in Hong Kong to formulate local standards and implementation guidelines based on the ISSB standards.
- Implement sustainability disclosures in phases. The Hong Kong government plans to include listed companies and financial institutions in the application of sustainable disclosure standards and implement sustainable disclosure in phases.
- Strengthen sustainable auditing. Regulators will strengthen audits of sustainability information to enhance the credibility of information disclosures. In addition, Hong Kong will train sustainable talents and promote the application of technology to reduce compliance costs.
- Develop a sustainable disclosure roadmap. The Hong Kong government will work with regulators and stakeholders to launch a sustainable disclosure roadmap this year to provide listed companies with clear sustainable disclosure rules.
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