AFRC publishes Report on Market Readiness for Sustainability Reporting and Assurance in Hong Kong

Feb 5, 2025

AFRC's Study Advocates for Improved Sustainability Assurance Practices and Urges Auditors to Incorporate Climate Risk in Financial Audits

The study focuses on the readiness of listed entities for sustainability reporting and assurance, and the readiness of public interest entity (PIE) auditors to provide sustainability assurance and address climate-related risks in financial audits. This also allows the AFRC to identify areas for capacity-building to support the Government’s roadmap implementation.

The study was conducted in two parts: an analysis of sustainability assurance obtained by 82 listed entities in the Hang Seng Index1 and two surveys on listed entities and PIE auditors regarding their practices and plans.

The study found that

1. Listed entities are taking steps towards robust climate reporting.

2. An increasing number of listed entities are obtaining sustainability assurance to enhance credibility of their disclosures.

3. PIE auditors with global networks lead in providing sustainability assurance, with others preparing to follow suit.

4. PIE auditors are making progress to assess and address climate risks in financial audits.

PLEASE CLICK HERE FOR THE FULL REPORT - Understanding the Baseline – Analysing the Market Readiness for Sustainability Reporting and Assurance in Hong Kong