Update of HKEX ESG Code
- allawyershk
- 2 hours ago
- 1 min read
On 19 April 2024, the HKEX announced amendments to the Environmental, Social and Governance (“ESG”) Reporting Code. The changes are effective for financial years commencing on or after 1 January 2025 of HKEX-listed companies.
Key changes of ESG Code
Requires enhanced disclosure in the ESG report on governance process, strategy, risk management and targets relating to climate risk and opportunities. (Note: GEM-listed issuers may have a reduced disclosure scope.)
Mandatory reporting of direct/indirect greenhouse gas (“GHG”) emissions.
Listed issuers shall comply or explain non-disclosures (including reliance on HKEX implementation reliefs).
Our recommended actions
Listed issuers should consider the following preparatory actions for their ESG report:
Dedicate a new or existing board committee (e.g. a separate Climate Committee) to be in charge of oversight of climate-related risks and opportunities;
Devise a group strategy for managing climate risks and opportunities;
Prepare/update climate risk policy with qualitative/quantitative targets (e.g. GHG emissions); and
Ascertain and manage GHG emissions internally and in relation to suppliers and customers (e.g. via surveys and contracts).
Remarks: The information provided in this statement does not, and is not intended to, constitute legal advice.
Contributors: Partner Ms. Grace Law and Assistant Solicitor Ms. Vivian Luk
