Hong Kong is determined to align its sustainability reporting standards with global benchmarks and will adopt a roadmap on achieving the goal by the end of the year, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said on Wednesday.

Speaking at a United Nations conference in Geneva, Hui said the Hong Kong Special Administrative Region is fully committed to aligning its sustainability disclosure rules with the standards set by the International Sustainability Standards Board.

“Hong Kong, China, as a premier sustainable finance hub channeling international capital to sustainable purposes, fully acknowledges the importance of sustainability disclosure,” Hui said at the 41st session of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting organized by the United Nations Conference on Trade and Development.

“We have the vision and determination to develop a comprehensive sustainability disclosure ecosystem in Hong Kong, China to equip our enterprises with the communication in a common international language on sustainability issues,” he said.

ALSO READ: HK sets new climate disclosure rules, aligns with global standard

The ISSB’s International Financial Reporting Standards (IFRS) - Sustainability Disclosure Standards require companies to disclose their climate-related risks and opportunities to investors and creditors.

As an interim step, the Hong Kong Exchanges and Clearing Ltd published the conclusions of its consultation on enchancing climate-related disclosures under its ESG Framework in April and introduced new climate-related disclosures requirements.

"This has rendered Hong Kong one of the first jurisdictions to have announced new climate-related reporting requirements for listed companies that are based on the IFRS S2," Hui said.

Hui also said that the Hong Kong Institute of Certified Public Accountants has developed drafts for the city’s sustainability reporting standards and recently completed a six-week public consultation.

ALSO READ: World's biggest public companies back climate risk disclosure

He said the proposed Hong Kong Standards are intended for cross-sectoral observance, including listed companies and regulated financial institutions, such as banks, fund managers, insurance companies, and Mandatory Provident Fund trustees.

“As set out in our vision statement, a phased implementation approach will be adopted, with application of the Hong Kong Standards prioritized for listed companies and regulated financial institutions,” Hui said.

He added that HKICPA is currently considering the public consultation results with the target of issuing the final Hong Kong Standards by the end of this year with an effective date of Aug 1, 2025.

Hui also said that, as Chief Executive John Lee Ka-chiu announced in his 2024 Policy Address last month, the SAR will launch this year its roadmap on the full adoption of the ISSB standards.

READ MORE: HK needs more policies to help improve ESG reporting

“The roadmap will provide a transparent and well-defined pathway on sustainability reporting for businesses in Hong Kong, as well as sufficient time for making preparations for the pragmatic implementation of the Hong Kong Standards,” he said.

Hui said the roadmap will also comprise sustainability assurance, data and technology, and capacity building, which are essential in building a comprehensive ecosystem to support the implementation of the Hong Kong Standards.