SFC inaugurates Forum on Sustainability Disclosures

The Securities and Futures Commission (SFC) of Hong Kong recently organized the inaugural Forum on Sustainability Disclosures to address the development of a sustainability disclosure ecosystem for Hong Kong. The forum was attended by over 200 industry leaders, policymakers, and stakeholders from Hong Kong, Mainland China, and the Asia-Pacific region. It emphasized the benefits of adopting international sustainability reporting and assurance standards in Hong Kong, particularly in view of the fundraising potentials that emerge when aligning with international standards such as the one of the International Sustainability Standards Board (ISSB). Also, participants acknowledged the benefit of enhanced transparency and comparability of firms and the subsequent benefits for investors.
The forum further discussed challenges in the preparation of internationally-aligned sustainability disclosures such as data gaps which – so participants – necessitate public-private partnerships to address this issue. Also, the forum recognized the importance of leveraging technology to meet regulatory expectations and the raising of awareness to ensure that industry gets involved and becomes prepared for sustainability reporting. However, so Mrs. Julia Leung, the SFC’s Chief Executive Officer, it is important to take into account „local circumstances and industry capabilities“ when adopting and aligning with international standards. Therefore, a pragmatic, proportionate approach is needed in the alignment process.
To conclude the ISSB welcomed the HKEX’s progress in updating sustainability disclosures based on ISSB standards and noted its anticipation to „the work of the Green and Sustainable Finance Cross-Agency Steering Group to develop a comprehensive Hong Kong roadmap for adopting the ISSB standards in Hong Kong“.