HKICPA publishes HKFRS Sustainability Disclosure Standards
The Hong Kong Institute of Certified Public Accountants (HKICPA) has published today HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures (HKFRS Sustainability Disclosure Standards or HKFRS SDS). The HKFRS SDS are fully aligned with the IFRS Sustainability Disclosure Standards (ISSB Standards), with an effective date of 1 August 2025.
Edward Au, President of the HKICPA, said: "The publication of the HKFRS SDS marks an important milestone in the sustainability development journey in Hong Kong. The HKFRS SDS provide a standardized framework for enhancing the consistency and comparability of corporate sustainability reports. The HKFRS SDS are fully aligned with the lSSB Standards, and this is critical to maintaining and enhancing Hong Kong’s competitiveness in international capital markets. The HKICPA will dedicate its efforts in the coming year to capacity building to enable the successful implementation of HKFRS SDS. We will also continue to contribute to the holistic development of the local sustainability reporting ecosystem in order to solidify Hong Kong’s status as a leading international financial centre and a green and sustainable finance hub."
The HKICPA will host a free live public briefing on HKFRS S1 and S2 on 16 January 2025 to explain the development journey of HKFRS SDS and its impacts on Hong Kong entities. In addition, to facilitate the implementation and application of the HKFRS SDS, the HKICPA has issued a series of FAQs and launched an implementation support platform for stakeholders to submit technical questions for discussion and will leverage this platform to relay any Hong Kong-specific issues to the ISSB as appropriate.
The HKICPA is committed to enhancing the skills and competencies of local stakeholders for sustainability reporting. As a member of the ISSB’s Partnership Framework for Capacity Building, the HKICPA will leverage the implementation support activities and guidance materials of the ISSB and supplement them with local initiatives to provide comprehensive support to local stakeholders. In addition, the HKICPA has also established a Sustainability Capacity Building Framework and the Sustainability Community to facilitate exchanges and information sharing among industry participants.
As outlined in the Government’s Roadmap on Sustainability Disclosure in Hong Kong (Roadmap), Hong Kong will prioritize the application of HKFRS SDS by large publicly accountable entities under a phased approach, with an aim to fully adopt the standards by 2028. The HKICPA will be guided by the Roadmap and will continue to work closely with other stakeholders in the areas of sustainability assurance, data and technology as well as skills and competencies to create an enabling environment for the successful implementation of the HKFRS SDS and to contribute towards the development of a comprehensive sustainability disclosure ecosystem in Hong Kong.
Free live webinar: Charting Sustainability Reporting in Hong Kong – Public briefing on HKFRS S1 and S2
Date: 16 January 2025 (Thursday)
Time: 1:00 – 2:00 p.m.
Language: Live, Cantonese (Pre-recorded English version and the recorded Cantonese live webinar will be made available to the public after the event)
Areas to be covered by the briefing:
- The development journey of the HKFRS SDS;
- Feedback from local consultations and our response;
- The reason for full alignment with the ISSB Standards; and
- Impact on Hong Kong entities as outlined in the Roadmap.
For registration, please click here.
Photo 1: The Hong Kong Institute of Certified Public Accountants (HKICPA) publishes the HKFRS Sustainability Disclosure Standards (HKFRS SDS). The HKFRS SDS are fully aligned with the IFRS Sustainability Disclosure Standards (ISSB Standards), with an effective date of 1 August 2025.
Photo 2: HKICPA President Edward Au said the publication of the HKFRS SDS marks an important milestone in the sustainability reporting journey in Hong Kong and will help enhance Hong Kong’s competitiveness in international capital markets.
