HKEx to raise the bar on climate disclosures
On April 14th, 2023, The Stock Exchange of Hong Kong Limited (the Exchange) released a consultation paper proposing the introduction of mandatory climate disclosure requirements in ESG reports for all issuers. The proposed effective date for the new requirements is January 1st, 2024.
Key Takeaways:
- From “Comply or Explain” to Mandatory
The current "Comply or Explain" provisions for climate-related disclosure (i.e. Aspect A4 Climate Change) will be replaced with mandatory one (i.e. Climate-related disclosure). Interim provisions are proposed for certain disclosures, such as the financial effects of climate-related risks and opportunities, scope 3 emissions, and certain cross-industry metrics. - Alignment with ISSB &TCFD
The new climate disclosure requirements will be aligned with the International Sustainability Standard Board (ISSB) climate standards and will be built on the principles of TCFD recommendations. The requirements will be organized into four pillars: governance, strategy, risk management, and metrics and targets. - Effective in 2024
The proposed effective date for the new climate disclosure requirements is January 1st, 2024, with two years of interim period for interim provisions. Issuers are expected to be in full compliance with all the new climate-related disclosures in respect of financial years commencing on or after 1 January 2026.
To learn more, download Key Takeaways from HKEx Consultation Paper on Enhancement of Climate Disclosure under its ESG Framework.
How can Zurich support our customers in climate resilience journey?
Zurich offers Climate Resilience to support customers on their journey towards climate resilience. Our services are designed to help assess, mitigate, and report risks across customers’ key operations. This will enable customers to fulfill climate disclosure requirements and, most importantly, build resilience to secure the future of their businesses.
Contact us to learn more about our services.