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HK accounting body calls for better ESG practices



More than half of Hang Seng Index firms voluntarily released sustainability reports in 2024, but most received only limited assurance, Hong Kong’s accounting regulator said. The Accounting and Financial Reporting Council found that 21% of firms earned a “reasonable” rating from sustainability auditors, while 53% received a “limited” rating. The rest had mixed or other assessments. A “reasonable” rating requires sufficient audit evidence to minimise misstatement risk, whereas a “limited” rating indicates no clear evidence against reported claims. The regulator urged companies to enhance expertise in sustainability practices as environmental, social, and governance (ESG) reporting gains importance among investors and regulators in Hong Kong’s financial sector.


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