Advertisement
Business of climate change
Business

Climate change: Hong Kong-listed companies at risk of failing to meet more stringent emissions-reporting rules, PwC says

  • Only a quarter of listed companies have made voluntary emissions disclosures that are set to be mandatory from next year, PwC survey says
  • Only 2 per cent of the 300 companies studied have disclosed the value or percentage of their assets exposed to climate risks and opportunities

Reading Time:3 minutes
Why you can trust SCMP
A person braves a hot, sunny afternoon fishing at East Coast Park Precinct in Hong Kong Island’s North Point district on October 5, 2023. Photo: Sam Tsang
Eric NgandMartin Choi

Hong Kong-listed companies must step up their preparedness for more challenging climate-related reporting requirements set to be phased in starting next year, according to audit and consulting firm PwC.

Advertisement
Only a quarter of 300 Hong Kong listed companies PwC studied voluntarily made any disclosures of their so-called scope 3 greenhouse-gas emissions – those attributable to their suppliers and customers – in their 2022 financial year reports on environment, social and governance (ESG) issues.
Under a proposed rules change awaiting formal adoption by Hong Kong’s bourse, beginning next year companies will need to at least state the upstream and downstream activities that give rise to scope 3 emissions. After two financial years, they will have to quantify such emissions.

“Given the relatively large accounting work for scope 3 emissions and the relatively weak accounting foundation, as well as challenges in the integrity and quality of the data collected, listed companies are advised to start the preparation as soon as possible,” Kanus Yue, sustainability disclosure and consulting lead partner at PwC China, said on Thursday.

The logo of Hong Kong Exchanges & Clearing is seen at the bourse operator’s office in Central, Hong Kong, on September 14, 2020. Photo: Reuters
The logo of Hong Kong Exchanges & Clearing is seen at the bourse operator’s office in Central, Hong Kong, on September 14, 2020. Photo: Reuters

Current rules only require disclosure of scope 1 emissions directly from companies’ own facilities and scope 2 emissions arising from bought energy. Over 99 per cent of the companies studied have met these requirements.

Advertisement
Advertisement