The Hong Kong Stock Exchange has delayed its proposed amendments to the Listing Rules to enhance climate-related disclosures which were originally targeted for implementation on 1 January 2024. The rule changes are now expected to come into effect on 1 January 2025, which will give more time to the market to prepare for the additional compliance obligations.
Details of the proposals, which upgrade climate-related disclosures from the current “comply or explain” basis to mandatory requirements, are set out in our bulletin on the consultation paper. The proposals were based on the exposure draft of the climate-related disclosure standards issued by the International Sustainability Standards Board (ISSB) and the consultation timeframe was designed to enable those wishing to respond to the consultation paper to take into consideration ISSB’s final version, once released.
In June 2023, ISSB published the final version of the IFRS Sustainability Disclosure Standards, which comprise IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. At the same time, ISSB indicated that it would develop an adoption guide to support regulators in implementing the IFRS Sustainability Disclosure Standards, including parameters for jurisdictional scaling and phasing-in. The adoption guide is expected to be released by the end of 2023 and the Stock Exchange has indicated that it will take into account the recommendations in the adoption guide when finalising the Listing Rule amendments.
We will keep you updated on progress of the Listing Rule changes once they are finalised by the Stock Exchange.