HKICPA welcomes the Government’s vision statement on developing sustainability disclosure ecosystem in Hong Kong
The Hong Kong Institute of Certified Public Accountants (HKICPA) welcomes the Government's Vision Statement on Turning Obligations into Opportunities in Developing the Sustainability Disclosure Ecosystem in Hong Kong that outlines the development of a comprehensive ecosystem for sustainability disclosure in Hong Kong. The HKICPA remains committed to playing a significant role within the Government’s vision as the sustainability reporting standard setter in Hong Kong, and looks forward to participate as part of the Government’s capacity building efforts to prepare local stakeholders for sustainability reporting.
The HKICPA believes that equipping corporations in Hong Kong with the ability to communicate sustainability considerations and issues in a common international language is of utmost importance. We applaud the Government's dedication to driving sustainability and recognize the importance of collaboration between regulators, the accounting profession, businesses, and other stakeholders to ensure the success of this initiative. The HKICPA will continue to work with financial regulators and stakeholders in developing a roadmap on the appropriate adoption of the ISSB standards to align with international standards, while recognizing the specific circumstance in Hong Kong.
"The HKICPA is pleased to acknowledge the Government's vision to establish a robust framework for sustainability disclosure, which demonstrates its dedication to building a sustainable future for Hong Kong," said Roy Leung, President of HKICPA. "As the sustainability reporting standard setter in Hong Kong, the HKICPA is ready to take upon the monumental task of developing local sustainability reporting standards closely aligned with the International Sustainability Standards Board (ISSB) standards. We will continue to work closely with fellow members of the Working Group on Sustainability Disclosures (WGSD) and other stakeholders to develop a roadmap within 2024 on the appropriate adoption of the ISSB standards.”
The HKICPA’s role as standard setter
The Institute has been committed to enabling the profession to contribute to the sustainability journey through active communication with its international counterparts, and local capacity and awareness building. To ensure the appropriate alignment of the ISSB standards for Hong Kong, the Institute has been working closely with the Green and Sustainable Finance Cross-Agency Steering Group (CASG) since the early stages of designing the local sustainability reporting framework.
As stated in the Government's statement, HKICPA is honoured to continue the role of sustainability reporting standard setter in Hong Kong and to support the Government's vision of aligning local sustainability disclosure requirements with the ISSB standards, as well as providing complementary application and implementation guidance.
We commend the Government's intention to drive the development of sustainability assurance in Hong Kong, as it plays a crucial role in ensuring credible implementation of sustainability practices. The Institute will continue to work with relevant stakeholders in its role to develop sustainability-related assurance and ethics standards, with the goal of instilling confidence in the accuracy and reliability of sustainability disclosures.
On capacity building
We support the Government's commitment to continuing existing capacity building schemes and developing capacity enhancement programmes for preparers, reporting and assurance professionals, and sustainability-related service providers. In line with these initiatives, the HKICPA is actively contributing to the comprehensive capacity building programme to prepare local stakeholders for sustainability reporting.
The HKICPA’s admittance into the ISSB Partnership Framework for Capacity Building in July 2023 demonstrates our active involvement in supporting the implementation of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (SDS). In anticipation of the ISSB standards, the Institute has enhanced the HKICPA Qualification Programme syllabuses to include sustainability related subjects across different modules and will continue these efforts. The HKICPA also offers a range of trainings, workshops and publications to prepare stakeholders for the implementation of the ISSB standards and HKEX’s revised climate disclosure requirements.
We have established a dedicated ESG Information Centre webpage to provide updates on this initiative and offer useful resources, including our current suite of sustainability-related trainings. In addition, the Institute plans to establish a dedicated platform for our local stakeholders to submit implementation questions regarding the standards.
The HKICPA’s Best Corporate Governance and ESG Awards form part of the Institute’s advocacy for high standards of corporate governance and sustainability in the Hong Kong market. We also publish sustainability related thought leadership that are incorporated in the Institute’s research reports and budget submissions.
Caption: Roy Leung, President of HKICPA, said, "As the sustainability reporting standard setter in Hong Kong, the HKICPA is ready to take upon the monumental task of developing local sustainability reporting standards closely aligned with the International Sustainability Standards Board (ISSB) standards.
