Roadmap on Sustainability Disclosure in Hong Kong and HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information & HKFRS S2 Climate-related Disclosures issued in December 2024

On 10 December 2024, the Hong Kong Government launched a roadmap on sustainability disclosure in Hong Kong. The roadmap sets out Hong Kong's approach to require publicly accountable entities ("PAEs") to adopt the sustainability disclosure standards fully aligned with those issued by the International Sustainability Standards Board ("ISSB Standards"). It provides a pathway for large PAEs to fully adopt the ISSB Standards no later than 2028, leading Hong Kong to be among the first jurisdictions to align the local sustainability disclosure requirements with the ISSB Standards.

Subsequent to the issuance of the roadmap, on 12 December 2024, the Hong Kong Institute of Certified Public Accountants published its first two Hong Kong sustainability disclosure standards, namely HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures ("HKFRS SDS"), and related explanatory memorandum. The HKFRS SDS are fully aligned with the ISSB Standards subject to having an effective date of 1 August 2025.

This Deloitte newsletter outlines the content of the roadmap and HKFRS SDS. It also discusses which entities would be required to apply the HKFRS SDS 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.

You are welcome to forward this newsletter to your colleagues who may find it interesting. Please also visit our IAS Plus website for access to further news and publications issued by Deloitte Global and Deloitte China in relation to financial and sustainability reporting developments and updates.