Distinguished guests, ladies and gentlemen, good afternoon. It is my great pleasure to welcome you to the Forum on Sustainability Disclosures, co-hosted by the Financial Services and the Treasury Bureau and the Securities and Futures Commission (SFC).
This is the second edition of the forum we launched two years ago, and the first held outside the SFC’s office, which is a direct reflection of our growing participation and the rising importance of sustainability disclosures.
Hong Kong: Steadfast in Adopting Global Standards
Over the course of my career, I have witnessed profound evolutions in financial markets. The valuation of businesses has shifted from focusing solely on financial performance to integrating both financial and non-financial metrics. Globally, this shift has been driven by two key forces: rising investor expectations, and evolving legal and regulatory requirements on sustainability disclosures including climate risks and opportunities.
As an international financial centre, Hong Kong is committed to upholding a transparent capital market and adopting global standards to build confidence among international investors. As outlined in the Government’s Roadmap last December, we have embarked on a determined path towards full adoption of the IFRS Sustainability Disclosure Standards (or ISSB Standards).
Since our first forum, consensus has been strong. Today, our question is no longer whether to disclose or what to disclose, but why better sustainability disclosures matter. Let me share two perspectives: one from companies, and one from investors.
Sustainability Disclosures: A Win-win for Corporates and Investors
First, for companies: transparent disclosures, whether financial or non-financial, deliver tangible benefits. To meet disclosure requirements, companies must fully grasp the increasingly complex risks to their business, enabling them to craft strategies to enhance corporate value and drive sustainable growth. A robust sustainability framework would enhance business resilience, strengthen risk management, optimise resources allocation, and clarify competitive positioning.
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