Exposure Draft HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and Exposure Draft HKFRS S2 Climate-related Disclosures

On 16 September 2024, the Hong Kong Institute of Certified Public Accountants (“HKICPA”) released exposure drafts on HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures (“Exposure Drafts”). The HKICPA is proposing full convergence of HKFRS S1 and S2 with IFRS S1 and S2, the equivalent standards issued by the International Sustainability Standards Board. The proposed effective date of the proposed standards is for periods beginning on or after 1 August 2025.

The HKICPA is requesting comments on the Exposure Drafts by 27 October 2024 and aims to publish the final HKFRS S1 and S2 by the end of 2024. The invitation to comment, Exposure Drafts and explanatory memorandum accompanying the Exposure Drafts are now available on the HKICPA’s website.

This Deloitte newsletter outlines the background to and content of these Exposure Drafts. It also discusses which entities would be required to apply the Hong Kong sustainability disclosure standards and compares the requirements with those of HKEX Listing Rules and PRC sustainability reporting guidelines for listed companies. In addition, this newsletter explains how Deloitte can help.

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