Governance Briefing — April 24, 2023
HKEX opened consultation on climate-related disclosure requirements aligned with ISSB standards, signalling mandatory governance, strategy, and risk reporting for listed companies.
Executive briefing: On 24 April 2023 Hong Kong Exchanges and Clearing published a consultation paper proposing climate-related disclosure requirements for listed companies aligned with the International Sustainability Standards Board (ISSB) framework. The proposals would mandate governance, strategy, risk management, and metric disclosures for financial years commencing on or after 1 January 2024.
Key governance signals
- Board accountability. Issuers must disclose board and management oversight of climate risks and opportunities, including expertise, processes, and frequency of discussions.
- Strategy and resilience. Companies would report on climate scenario analysis, transition plans, and impacts on business models.
- Risk management and metrics. Proposals include disclosure of risk identification processes, greenhouse gas emissions (Scopes 1, 2, and 3), and industry-specific metrics.
Action checklist
- Evaluate existing ESG reporting controls against ISSB-aligned expectations, identifying data gaps and governance enhancements.
- Develop climate scenario analysis capabilities and board reporting templates addressing resilience and strategic responses.
- Engage stakeholders on transition plans, financing needs, and assurance options ahead of the proposed effective date.
Sources
- HKEX Consultation Paper on Enhancement of Climate-related Disclosures under the ESG Framework
- HKEX news release announcing the climate disclosure consultation
Zeph Tech supports Hong Kong issuers with climate governance diagnostics, ISSB-aligned data architecture, and board education for the proposed HKEX disclosure regime.