The Hong Kong Institute of Certified Public Accountants (HKICPA) has issued a statement in support of the Accounting and Financial Reporting Council’s (AFRC) recent public consultation regarding the establishment of a regulatory framework for sustainability assurance in Hong Kong.  

The framework aims to enhance the credibility of sustainability disclosure through international standards and equal rules for assurance providers. 

The AFRC’s consultation paper details five principal proposals.  

The first suggests that, pending additional consultations involving Hong Kong Exchanges and Clearing Limited and relevant financial regulators, all entities required to comply with HKFRS Sustainability Disclosure Standards would need to secure independent assurance for their disclosures. 

The second proposal calls for a phased introduction of limited assurance requirements.  

In the initial stage, entities would be required to obtain limited assurance for scope 1 and 2 greenhouse gas emissions from their third reporting year under the new standards.  

The second stage would extend this requirement to all mandatory sustainability disclosures by the fifth reporting year. 

A further proposal indicates that only registered sustainability assurance providers – either qualified local auditors or accredited local non-Certified Public Accountant companies that meet set criteria – would be permitted to perform these assurance services. 

Additionally, mandatory assurance activities would be governed by the Hong Kong Standard on Sustainability Assurance 5000. 

The final major point involves the adoption of a unified approach to register and supervise all sustainability assurance providers, as well as oversee standard-setting tasks undertaken by the HKICPA. 

The Institute stated its intention to consult its members, accounting practices and other stakeholders, and plans to submit feedback representing practical viewpoints from within the industry. 

Welcoming the move, HKICPA president Stephen Law said: “The consultation is a timely and important step in strengthening Hong Kong’s sustainability reporting ecosystem and reinforcing the city’s position as an international financial centre aligned with global standards.  

“As the statutory accountancy body in Hong Kong, the HKICPA stands ready to contribute its professional expertise to support the development of a robust, credible and internationally consistent sustainability assurance framework supporting Hong Kong’s transition towards a more sustainable and resilient economy.”

In recent years, the HKICPA has introduced various initiatives aligned with government plans for advancing sustainability disclosure practices.

These include a Certificate on Sustainability Reporting Programme introduced in 2024, along with webinars, workshops and continuing professional development offerings on sustainability topics.  

Elements of sustainability and environmental, social and governance have also been incorporated into its Qualification Programme curriculum.