HKEX Climate Risk Reporting Proposals – Challenges and Opportunities

On 14 April 2023, the Hong Kong Stock Exchange (HKEX) released a Consultation Paper which aims to substantially enhance reporting requirements related to climate risk and greenhouse gas emissions. The proposed new requirements cover specific disclosure requirements across the four areas of: governance, strategy, risk management, metrics & targets.  

The proposed regulations will move climate risk reporting from a “comply and explain” approach into the realms of mandatory reporting. The new guidance and consequential amendments to existing guidance is proposed to apply to financial years commencing on or after 1 January 2024 with certain requirements however not being required in the first two reporting periods as part of Interim Provisions. The proposed amendments would apply to both the Main Board Listing Rules and the GEM Listing Rules.

This Deloitte publication outlines the most significant changes and Interim Provisions proposed under the Consultation Paper. It also compares the proposed regulations with the Climate-related Disclosures Standard Exposure Draft issued by International Sustainability Standards Board and European proposals. The publication also provides insight on next steps including thinking on the opportunities and challenges HKEX reporters will face as a result of the likely new requirements and actions entities can take to prepare and how Deloitte can help.  

Following the enhancement of climate-related disclosures, Deloitte China’s Audit and Assurance looks forward to the acceleration of the building of resiliency and the sustainability journey of Hong Kong reporters, and further strengthening Hong Kong’s position as a trusted and attractive venue for capital raising.