Hong Kong, August 2025 – The Hong Kong Stock Exchange (HKEX) has announced the introduction of new sustainability reporting standards, aligned with the International Sustainability Standards Board (ISSB) framework. The goal is clear: to strengthen ESG transparency and ensure comparability of information among listed companies.
What’s changing?
Companies will now be required to disclose detailed information on:
- Their climate strategy and exposure to environmental risks.
- Greenhouse gas emissions, including Scopes 1, 2, and 3.
- Governance practices and management of social issues.
This new regulation marks a mandatory shift toward integrated sustainability reporting and is expected to be rolled out progressively from 2026.
Why it matters
Hong Kong is reinforcing its role as an Asian financial hub by aligning with international standards. For investors, this means:
- Greater comparability between local companies and their global peers.
- Reduced risk of greenwashing.
- Strong incentives for companies to improve their ESG practices.
These new standards strengthen the global momentum toward more rigorous sustainable finance. Following the EU’s CSRD and Singapore’s reporting framework, Hong Kong confirms that major financial centers are converging toward greater accountability on climate issues. For investors, this creates both opportunities and obligations: ESG performance will no longer be an optional add-on, but a core component of financial evaluation.
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