The Hong Kong Institute of Certified Public Accountants (HKICPA) has identified a need for localised greenhouse gas emission calculation references and climate scenario projections tailored for Hong Kong-listed companies.
This requirement arises from corporate officers’ feedback during training workshops on climate-risk disclosures, reported South China Morning Post.
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Currently, Hong Kong-listed companies rely on emission factors published by the US, UK, and the United Nations’ Intergovernmental Panel on Climate Change for their emissions disclosures.
HKICPA accounting and sustainability standard setting head Cecilia Kwei told the ReThink HK sustainable business forum that: “Participants kept reiterating that they need more Hong Kong-specific greenhouse gas emission factors so that they don’t have to use [overseas references] … and climate [risk] scenarios.”
Such localised data are said to be particularly beneficial for scenario analyses involving storms and flood risks, necessitating collaboration between the government and businesses.
Starting in 2025, under the disclosure requirements of Hong Kong Exchanges and Clearing (HKEX), the largest listed companies will be mandated to disclose greenhouse gas emissions from their operations and purchased energy.
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By GlobalDataFrom 2026, emissions attributable to the supply chain partners will also need to be disclosed, along with conducting scenario analyses and reporting on climate resilience.
In the absence of location-specific data, HKEX allows companies to use proxy data from other regions.
Kwei also noted that China is working on developing emission factors for approximately 100 products by 2027, with plans to expand this to 200 by 2030.
Following consultations, the HKICPA is set to publish Hong Kong’s sustainability disclosure standards, aligning them with International Sustainability Standards Board (ISSB) guidelines.
The integration of these standards into local regulations will be determined by Hong Kong’s banking, securities, and stock market regulators.
Earlier this year, the Institute of Singapore Chartered Accountants (ISCA) signed a memorandum of understanding with the HKICPA.
This agreement was aimed to enhance international cooperation and create new opportunities within the accountancy sector in the Asia-Pacific region.
