The Hong Kong Stock Exchange (HKEX) introduced the first Environmental, Social and Governance (ESG) Guidelines in 2012 to encourage the adoption of ESG reporting as best practice by listed companies. After ten years of development, ESG reporting has become compulsory for listed companies in Hong Kong. With effect from 1 January 2022, ESG reports should be published simultaneously with the annual report and listed companies have to integrate ESG risks into the risk management framework for annual review.

In April 2019, the Hong Kong Securities and Futures Commission (SFC) released a circular to management companies of SFC-authorized unit trusts and mutual funds to enhance the disclosure standards of green or ESG funds. A significant addition was subsequently introduced in 2021. It is clear that SFC is accelerating its pace to enhance Hong Kong’s green finance infrastructure.

The continued threat of climate change could lead to catastrophic economic and social consequences. There is growing demand from creditors and investors for climate-related data disclosure which is consistent, comparable, reliable and clear. Since July 2020, the HKEX has revised its ESG Reporting Guidelines to include elements of the Taskforce on Climate-Related Financial Disclosures (TCFD) recommendations. In light of the Green and Sustainable Finance Cross-Agency Steering Group’s announcement to make climate-related disclosures aligned with the TCFD recommendations mandatory across relevant sectors by 2025, HKEX has also encouraged listed issuers to commence reporting in accordance with the TCFD recommendations the soonest. Meanwhile, similar to the TCFD, the Taskforce on Nature-related Financial Disclosures (TNFD) is developing recommendations that organizations can follow when disclosing information about companies' exposure to natural hazards, which are expected to be written into national law by governments. With better disclosure and analysis, the data gap is expected to close on climate and nature-related financial risks.

In this webinar, the speakers will cover the following areas:  

• The latest regulatory development through the lens of HKEX guidance including climate disclosures, the net-zero guide for business and climate-related risk management.
• How ESG funds are defined and how ESG focus is measured and monitored under the SFC’s circular.
• Overview of the TCFD and TNFD frameworks for companies to prepare for future disclosure standards.