HKEX mandates ISSB-aligned climate disclosure for listed companies from 2025

The Hong Kong Stock Exchange will require all listed companies to disclose Scope 1 and 2 emissions from the 2025 reporting year under its ISSB IFRS S2-aligned New Climate Requirements. For Indian companies with Hong Kong listings or operations, the phased mandate signals the tightening regional adoption of ISSB standards for climate reporting.

The Stock Exchange of Hong Kong announced mandatory climate-related disclosure requirements, the New Climate Requirements, aligned with the ISSB's IFRS S2 standards following broad-based support in consultation. All listed companies must disclose Scope 1 and 2 greenhouse gas emissions from the 2025 reporting year. Larger companies and those in the Hang Seng Composite LargeCap Index must disclose Scope 3 emissions on a comply-or-explain basis in 2025, with mandatory Scope 3 disclosure following in 2026. HKEX issued guidance referencing IFRS S1 principles to aid compliance.

All HKEX-listed companies are affected, required to disclose Scope 1 and 2 emissions from 2025. Larger companies and Hang Seng Composite LargeCap Index constituents face more extensive obligations, reporting Scope 3 on a comply-or-explain basis in 2025 and mandatorily from 2026. Smaller and mid-size companies on the Growth Enterprise Market may voluntarily disclose Scope 3 emissions. The phased approach affects investors seeking sustainable opportunities, who gain standardised, comparable climate data to inform decisions across Hong Kong's capital markets as ESG factors grow in importance.

Listed companies should prepare to disclose Scope 1 and 2 emissions from the 2025 reporting year and assess readiness for Scope 3 reporting, which becomes comply-or-explain for large companies in 2025 and mandatory in 2026. Companies opting not to disclose Scope 3 must provide a rationale. Entities should use HKEX guidance referencing IFRS S1 principles as a compliance roadmap and watch for additional training and resources HKEX has pledged. Companies should also monitor the Hong Kong government's roadmap for adopting ISSB standards and developing local sustainability reporting standards.

Key figure — Mandatory Scope 1 and 2 disclosure for all listed companies: 2025 reporting year