[Watch video replay]

The threat of climate change and the need for companies to decarbonize are not new. The Taskforce on Climate Related Disclosures (TCFD) published its recommendations in 2017 and many companies have started to follow them. Most of these companies are, however, still at the stage of creating the governance structure for overseeing TCFD work and familiarizing their staff with its recommendations. Furthermore, it is difficult for investors to compare and evaluate these efforts due to their forward-looking nature, as well as the inconsistency and complexity of the information available.

However, the pace of change must accelerate as:

• The latest IPCC report shows that global greenhouse gas emissions continue to rise. It warns: “Without immediate and deep emissions reductions across all sectors, limiting global warming to 1.5°C is beyond reach.” This is the threshold at which scientists believe there will be a significant increase in climate change. Action is therefore needed to radically accelerate the transition to net-zero emissions.
• IFRS will complete setting up its International Sustainability Standards Board (ISSB) by June and has just issued a ‘Climate’ exposure draft based on TCFD with reply due by 29 July. It expects to turn these into standards by the end of this year. Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group has indicated it expects reporting per this standard to rapidly become mandatory across relevant sectors by 2025.

HKUST Institute for the Environment and the Hong Kong Institute of Certified Public Accountants jointly organized this webinar to address the perspectives of companies, investors and auditors on:

• Current progress on major Hong Kong companies implementing TCFD’s recommendations;
• Practical ways for companies to follow TCFD’s recommendations, and hence ISSB’s Climate Standard to report their capacity to reach net zero, providing investors results which are easy to compare and evaluate.