SFST's keynote speech at Forum on Sustainability Disclosures (English only) (with photos)
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Kelvin (Chairman of the Securities and Futures Commission (SFC), Dr Kelvin Wong), Julia (Chief Executive Officer of the Securities and Futures Commission, Ms Julia Leung), Emmanuel (Chief Executive Officer of the Abu Dhabi Global Market Financial Services Regulatory Authority, Mr Emmanuel Givanakis), Mark (Chief Executive of the Dubai Financial Services Authority, Mr Mark Steward), distinguished guests, ladies and gentlemen,
Good afternoon. It is my pleasure to join you all at the Forum on Sustainability Disclosures today to exchange views on this topic with growing importance globally. First of all, I would like to thank the Securities and Futures Commission, our co-organiser of today's event, and the Hong Kong Exchanges and Clearing Limited (HKEX), our event partner, for joining hands with our bureau (Financial Services and the Treasury Bureau) to promote the development of a comprehensive sustainability disclosure ecosystem in Hong Kong. Today's Forum is one of the fruits of our joint effort, providing a platform for vibrant exchanges of expertise, ideas and global collaboration to foster sustainability disclosures in the global capital market. Also, amid the current complicated geopolitical environment, we are also here to reaffirm our commitment in driving the sustainability agenda together with our partners.
Having accurate, comparable and consistent information on sustainability-related topics, as highlighted by Kelvin just now, is vital for making informed decisions, evaluating climate-related risks, and fostering innovation in sustainable financing. This is why sustainability disclosures are attracting fast-growing global awareness. Today we will explore together the path ahead for the global and local adoption of the IFRS (International Financial Reporting Standards) - Sustainability Disclosure Standards (ISSB Standards). We will also discuss how disclosures can drive significant progress in sustainability development and facilitating financing and investments for real economy transition, climate adaption and mitigation in Hong Kong, the region, and beyond.
Hong Kong is a leading international financial centre and a hub for green and sustainable finance. Last year, the volume of green and sustainable bonds arranged in Hong Kong amounted to around US$43 billion, capturing around 45 per cent of the regional total and ranking first in the Asian market for seven consecutive years since 2018. Besides, as of June 2025, the number of environmental, social and governance (ESG) funds authorised by the SFC was over 200 with assets under management reaching HK$1.1 trillion and more. The number of ESG funds and assets under management recorded an increase of 51 per cent and 18 per cent respectively from three years ago. At the same time, we are committed to enhancing our competitiveness by adhering to the international standards and best practices, and have taken big steps in achieving this goal.
Sustainability disclosures
Following the release of the first set of the ISSB Standards back in 2023, the HKSAR (Hong Kong Special Administrative Region) Government published a vision statement in March last year, outlining our vision and approach in building a comprehensive ecosystem for sustainability disclosure in Hong Kong. Since then, listed companies, financial institutions, investors and industry organisations have been engaged in the consultation to identify Hong Kong-specific circumstances that should be taken into account when developing the Hong Kong Sustainability Disclosure Standards (Hong Kong Standards) which is in full alignment with the ISSB Standards. We are happy that the Hong Kong Institute of Certified Public Accountants (HKICPA), as the sustainability reporting standard setter in Hong Kong, published last December the Hong Kong Standards, which are fully aligned with the ISSB Standards.
After the release of our vision statement, we continued to work closely with financial regulators and stakeholders in ironing out the steps and timeline for Hong Kong's full adoption of the ISSB Standards. We launched in December last year the Roadmap on Sustainability Disclosure in Hong Kong, detailing the approach to require publicly accountable entities (PAEs) to adopt the ISSB Standards. This roadmap provides a clear pathway for large PAEs to adopt fully the ISSB Standards no later than 2028.
Since the launch of the Roadmap, we have made progressive moves towards our target. For listed issuers, the HKEX has implemented in phases since January this year new climate-related disclosures requirements under its Listing Rules (New Climate Requirements), which are developed based on IFRS S2 Climate-related Disclosures. The New Climate Requirements aim to prepare companies to start climate reporting early in accordance with provisions of the ISSB Standards. The HKEX will consult the market in 2027 on mandating sustainability reporting against the Hong Kong Standards for listed PAEs, with an expected effective date of January 2028 under a proportionate approach. For the financial industry, our financial regulators will conduct sector-specific engagements to determine the approach and timing of adopting the Hong Kong Standards for different financial sectors. Subject to stakeholders' comments and feedback, relevant financial regulators will require non-listed financial institutions carrying a significant weight (i.e. non-listed PAEs) to apply the Hong Kong Standards no later than 2028.
We are proud that the IFRS Foundation, in its publication of the jurisdictional profiles on adoption of the ISSB Standards this June, confirms Hong Kong as among the initial set of jurisdictions having set a target of fully adopting the ISSB Standards. This underscores our commitment to enhancing the transparency of information on sustainable development in the capital markets, enabling investors to make informed investment decisions and promoting global capital flows.
I would like to take this opportunity to thank the ISSB for its support and continuous engagements with relevant stakeholders in Hong Kong during our journey on the full adoption of ISSB Standards.
Sustainability assurance
To support smooth and practical implementation of sustainability disclosure requirements, a comprehensive and robust ecosystem encompassing aspects such as sustainability assurance, data and technology, as well as skills and competencies is vital. For sustainability assurance, the HKICPA issued in March this year the Hong Kong Standard on Sustainability Assurance 5000 which fully converges with the International Standard on Sustainability Assurance 5000 published by the International Auditing and Assurance Standards Board. It will develop the local ethics standards for sustainability assurance, which will be on a full convergence basis with the International Ethics Standards for Sustainability Assurance published by the International Ethics Standards Board for Accountants, for publication within this year. The Accounting and Financial Reporting Council is also working with relevant financial regulators and stakeholders with a view to releasing a proposed local regulatory framework for sustainability assurance for public consultation within this year.
Data and technology
Promoting data and technology is one of our key priorities to promote the availability and accessibility of sustainability-related information. We have launched a number of tools to support enterprises, in particular small and medium-sized enterprises (SMEs), in sustainability reporting. For example, a Climate and Environmental Risk Questionnaire for non-listed companies/SMEs was launched three years ago to provide a free and easy-to-use sustainability reporting template to corporates in need, facilitating their understanding of their sustainability performance and raising their sustainability profiles to lenders, investors and supply chain clients. We are now enhancing the Questionnaire to make it more accessible and inclusive.
Another example is the greenhouse gas emissions calculation and estimation tools we launched in February last year. The tools are free for public use and aim to help corporations manage their environmental footprint while encouraging market participants to improve their sustainable development practices. The tools also clearly disclose the methodology and data sources, and incorporate Hong Kong and Mainland elements into the calculation and estimation models. Going forward, we will continue to enhance the tools and collaborate with different stakeholders to facilitating better sustainability disclosures with the use of these tools.
Skills and competencies
Last but not least, we are committed to strengthening capacity building to assist the industry and companies in their journey towards sustainability disclosures. The HKSAR Government will continue to support industry capacity building through our Pilot Green and Sustainable Finance Capacity Building Support Scheme launched three years ago, and the Scheme will be extended to 2028. Besides, financial regulators, the HKEX and the HKICPA, have been organising conferences, seminars and other stakeholder exchange activities to promote alignment with the ISSB Standards and support capacity building efforts locally, regionally and internationally. These engagement activities and relevant training programmes help to nurture skilled sustainable finance professionals including preparers, reporting and assurance professionals, and sustainability-related service providers.
By collaborating and working together, we can definitely build a sustainable and resilient future. Before I wish all of you a fruitful day, normally these days, forums can't finish without mentioning AI. Just before I came to this stage, I checked on my app in terms of what word it would use to describe Hong Kong and also sustainability disclosure. There are a number of choices, of course it depends on which app you use and also what time of the day that you use it. One of the key words is actually "ecosystem".
I think the app describes what I just described, basically it's about who to provide, what to provide and how to provide the information. I'm sure in the coming days and also this forum, you will be having a lot of insightful discussions and exchanges, in particular how Hong Kong can be a better ecosystem on sustainability disclosures for not just Hong Kong but also for the region and the world. Thank you.
Ends/Wednesday, September 10, 2025
Issued at HKT 17:42
Issued at HKT 17:42
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