Jan 30, 2026
AFRC Proposes Mandatory Sustainability Assurance to Strengthen Hong Kong’s Role as a Leading Green Finance Hub. The Accounting and Financial Reporting Council (AFRC) published a consultation paper on the proposed regulatory framework for sustainability assurance in Hong Kong ("Framework").
Key Proposals of the Framework
Subject to further consultations by Hong Kong Exchanges and Clearing Limited and relevant financial regulators, all entities subject to mandatory reporting using HKFRS Sustainability Disclosure Standards (Mandatory HKSDS Reporting) must obtain independent assurance.
Subject to the aforementioned consultations, all in-scope entities must obtain limited assurance in phases:
Phase_1:_Scope 1 and 2 greenhouse gas emission disclosures from the third financial year of the Mandatory HKSDS Reporting; and
Phase_2:_All remaining HKSDS-mandatory disclosures from the fifth financial year of the Mandatory HKSDS Reporting
Registered local public interest entity auditors that meet additional criteria; or
Accredited local non-CPA firms that meet similar criteria.
Mandatory assurance must be carried out in compliance with Hong Kong Standard on Sustainability Assurance 5000.
A single regulatory model is proposed to register and regulate all SAPs and oversee the related standard-setting by the Hong Kong Institute of Certified Public Accountants.
The deadline for submitting responses is 30 March 2026. Feedback must be submitted using the prescribed form available on the AFRC website