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HKEX mulls stricter climate risk disclosures

Starting in January, the Hong Kong Stock Exchange (HKEX) plans to impose stricter and more extensive climate-related risk disclosures on its listed companies. The new rules will be more comprehensive than the current ‘comply or explain’ framework, which requires companies to make disclosures or justify their absence. The proposed regulations will align with the International Sustainability Standards Board's rules being developed by the London-based IFRS Foundation, the complement to its International Accounting Standards Board. Under the new guidelines, companies must provide transition plans, measure and disclose Scope 3 emissions, and explain the risks and opportunities that climate change presents to investors. HKEX will provide a two-year transition period before full compliance is required in 2026. IPO applicants must also disclose environmental, social, and governance (ESG) information in their prospectuses.


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