SFC welcomes IOSCO endorsement of new sustainability disclosure standards

The Securities and Futures Commission of Hong Kong, SFC, has published a press statement to announce that it is very pleased with the decision of the International Organization of Securities Commissions (IOSCO) to endorse the IFRS Sustainability Disclosure Standards developed by the International Sustainability Standards Board (ISSB) (please see EventID 22185 in this context for more information on the endorsement). These standards aim to provide a global standard for corporate disclosure of climate and sustainability-related information which is primarily beneficial for investors to make informed investment decisions and for companies that are subject to sustainability-related disclosure requirements.
All 130 member IOSCO member securities regulators are now encouraged to incorporate these standards in their dealing with sustainability-related risks and opportunities and corresponding supervisory practices.
The SFC plans to collaborate with relevant government departments, financial regulators, and the Stock Exchange of Hong Kong Limited (SEHK) to create a comprehensive plan for adopting the ISSB standards in Hong Kong. The SEHK’s proposed disclosure requirements for listed companies already reference the ISSB’s draft for climate-related disclosures, and the final requirements will consider feedback and the ultimate ISSB standards (please see EventID#20823).
To conclude, Ms. Julia Leung, the SFC’s Chief Executive Officer, once again emphasizes the importance of Hong Kong’s financial institutions and companies understanding these ISSB standards to seize opportunities in transition finance. Not adhering to these global standards could result in international capital bypassing their companies, so the CEO.