HKICPA’s commitment and role in Hong Kong's sustainability journey

Dear members,

In light of the ISSB announcement of its two crucial inaugural sustainability standards, IFRS Sustainability Disclosure Standards (IFRS SD Standards): IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, I would like to share with you the Institute’s continued commitment and plan to drive the development of the profession and contribute to the public good, by playing a leading role in Hong Kong’s sustainability journey.

The Institute welcomes this momentous occasion for sustainability reporting and finance. We have been engaged with the development of the ISSB standards and have expressed strong support from the start of the initiative in 2020. As outlined in the Alert issued earlier this week, the Institute intends to adopt the standards as the local sustainability reporting framework on a fully converged basis and has established the roadmap towards achieving this goal.

In line with our initiatives stated in the Strategic Plan 2023, the Institute is pressing on with our role as Hong Kong’s standard setter for sustainability and climate-related disclosures, and continues to enhance the following efforts within this area:

Education and training: We are committed to equipping our members and students with the necessary skills to navigate this changing landscape. In addition to incorporating sustainability topics in the syllabus of the Qualification Programme (QP), we have established a Sustainability Education Working Group under our Sustainability Committee to advise on a range of training programmes for members. So far, we have developed a library of ESG-related e-learnings, and with the ISSB standards on climate in view, the Institute has developed a series of deep-dive workshops with professional services firms that aim to provide members with the technical background and practical know-how on climate risk and reporting.

Raising awareness: As a thought leader in the accounting profession, the Institute actively promotes the importance of sustainability and climate disclosures to our members, the public, and the wider business community. Various sustainability related articles as well as corporate case studies are published regularly in our flagship A Plus magazine. To facilitate members’ self-learning and keep you up-to-date, we have launched the ESG Information Centre which contains the latest news on sustainability that is relevant to the accounting profession in Hong Kong, as well as a selection of other relevant resources. In anticipation of the issuing of the ISSB standards, we reviewed the ESG assessment criteria of the Best Corporate Governance and ESG Awards, which will soon be launched. The Awards will also look at the extent to which companies are setting and adhering to interim and long-term quantitative ESG targets.

Advocating sustainability assurance by professional accountants: We have continued to promote the resources and campaigns of IFAC, GAA, A4S, among others, to enhance market awareness of the value of having CPAs provide assurance on sustainability reports. We will also be engaging with stakeholders and seeking public comments on the IAASB’s and IESBA’s respective consultations on sustainability reporting later this year through dedicated working groups established under the relevant standard setting committees. Furthermore, alongside the Awards, we are also revisiting and updating our brief study on ESG Assurance in Hong Kong, published in December 2021, to understand how the ESG assurance landscape in Hong Kong is changing.

Internal sustainability practices: To lead by example, the Institute will continuously improve our own internal sustainability practices, including reducing our carbon footprint, minimizing waste, and adopting environmentally friendly office policies. The Institute has commenced the development of its net zero pathway and carbon reduction target, and published the result of its initial carbon assessment in late 2022.

As members of the Institute, you have a unique opportunity to become key leaders and advisers in driving sustainable practices in your own organizations and beyond. By actively participating in our initiatives and staying informed about the latest developments in sustainability, you can become a driving force for positive change in your industry and community. We encourage you to seize this opportunity and join us in our journey towards a more sustainable future.

Together, let us embrace the challenges and opportunities of a sustainable future and contribute to the development of the profession and the public good

Best regards,

Margaret W.S. Chan
Chief Executive & Registrar
Hong Kong Institute of Certified Public Accountant

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