Edward Au is in the business of transforming companies. He understands more than most that getting a company listed is about more than raising capital. “I get to see the bigger picture. Initial public offerings represent a turning point in terms of scaling and competing on a global stage. After listing, it’s the beginning of a brand new world for a company,” he says.
After being involved in many company transformations, Au, the Hong Kong Institute of CPAs’ new President, is now contributing to the next major stage in the Institute’s transformation – one which sees its role as Hong Kong’s sustainability reporting standard setter become more publicized, and its efforts to support members’ development intensify.
Its work in establishing Hong Kong’s sustainability reporting standards has been advancing steadily. After conducting extensive stakeholder engagement, the Institute on 12 December 2024 published HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures (HKFRS Sustainability Disclosure Standards or HKFRS SDS). Fully aligned with the IFRS Sustainability Disclosure Standards (ISSB Standards), HKFRS SDS are effective from 1 August 2025. “It’s definitely a key milestone for Hong Kong and it’s great that I get to experience it as the Institute’s President,” says Au.
He says the focus of the Institute this year is on capacity building, and ensuring implementation support activities are up and running. For example, it organized a live public briefing on HKFRS S1 and S2 covering the development journey of the HKFRS SDS and its impact on Hong Kong entities in mid-January.
“The next steps are about equipping accountants with the necessary knowledge and experience in order to drive this forward not just for Hong Kong, but also for counterparts in the Greater Bay Area (GBA). As Hong Kong is part of the first batch of jurisdictions that have aligned with the ISSB Standards, Hong Kong accountants can play a big role in bridging the knowledge gap between sustainability reporting standards in the Mainland, and such standards outside the Mainland,” says Au, adding that sustainability disclosure standards in the Mainland are still evolving.
Last year, the Institute launched the 1-2-7 Sustainability Capacity Building Framework (1-2-7 Framework), a training curriculum designed to assist members in progressing their sustainability learning. “1-2-7 Framework covers everything from basic 101 knowledge to practical implementation at different levels. The Institute is now looking to further enhance the content of the framework by making sure it is aligned with the ISSB Partnership Framework for Capacity Building, and therefore international requirements,” says Au.
An implementation support platform and the Sustainability Community were also introduced. The support platform enables stakeholders to submit technical questions for discussion and can be leveraged by the Institute to relay any Hong Kong-specific issues to the ISSB. The Sustainability Community, meanwhile, was created to bring together sustainability practitioners, within and beyond the Institute’s membership, in a central hub to exchange knowledge and best practices
“With more companies in Hong Kong adopting
sustainability reporting standards under a phased-in approach, the demand for assurance, and ensuring sustainability data is reliable and relevant, will only grow in the future, and this is an opportunity for the
profession.”
Both the platform and the community are a testament to the Institute’s commitment to empowering and enabling its members, notes Au. “We really strive to engage and support our members from different angles, whether it is through the community initiative, the FAQs platform to address concerns, or the live briefings to explain how this is going to impact disclosures,” he says.
Au points out that the publication of the government’s Roadmap on Sustainability Disclosure in Hong Kong in December 2024 was another key development, and will serve as a guide for the Institute on the timeline for the implementation of the HKFRS SDS.
The roadmap also highlights another critical component of a comprehensive ecosystem that supports sustainability disclosures, and another area in which the accounting profession can play a leading, proactive role – sustainability assurance. “With more companies in Hong Kong adopting sustainability reporting standards under a phased-in approach, the demand for assurance, and ensuring sustainability data is reliable and relevant, will only grow in the future, and this is an opportunity for the profession,” says Au. “Although Hong Kong’s sustainability assurance regulatory regime will be left with the Accounting and Financial Reporting Council, the Institute will definitely support the implementation of those assurance standards. The ultimate goal is to enable our members, and contribute towards Hong Kong to become an international green and sustainable finance hub.”
The Institute aims to publish the final local assurance and ethics standards before the end of 2025.
Creating GBA opportunities
Au, who is Deloitte China Southern Region Managing Partner, believes the profession is at a pivotal juncture presenting it with both challenges and opportunities. With that, one of his priorities this year as President is to focus on enhancing global connections and maintaining partnerships with international counterparts. He also sees a need to help members navigate the evolving global interconnectedness. “Accountants have a key role to play in bringing quality companies from China out into the rest of the world, and also attracting international companies or investors to Hong Kong,” he says. “We should also continue to exhibit Hong Kong’s accounting excellence on a global stage.”
Helping members to seize career and business development opportunities in the GBA is also important to Au, who wants to see a boost in Hong Kong CPAs’ value proposition in the Mainland.
Further collaborating with Mainland accounting bodies, and helping members connect with peers in Mainland GBA cities, will be key to identifying opportunities for Institute members, he says, “whether it’s in audit, tax advisory, mergers and acquisitions (M&A), or sustainability.”
The Institute will keep pushing for preferential policies in the GBA for Hong Kong CPAs. For example, it will continue to keep in close contact with GBA Mainland cities as it strives for “early and pilot implementation” of policies to support career development of Hong Kong’s CPAs in the GBA, notes Au.
“In the long run, we advocate the launch of the GBA CPA Qualification Examination, allowing Hong Kong’s practising CPAs to be partners of non-audit businesses of accounting firms in GBA Mainland cities, and to include Hong Kong CPAs into the Catalogue of Overseas High-end Talents of GBA Mainland cities,” Au says.
With a GDP of close to US$ 2 trillion in 2023, the GBA has seen continuing policy-driven integration. More interconnection within the GBA is expected, and Au sees accountants playing a part in this. “Hong Kong plays a great role in the GBA, and with accounting being the business language of the world, Hong Kong accountants can help further drive integration of the GBA cities,” he says.
Engaging talent
With the evolving needs of business, including the increasing demand for sustainable development, Au says another priority is to ensure a steady supply of skilled accountants. “Talent is key to all aspects in terms of development. So it’s important to find ways to get the next generation of talent to embrace the profession and to push forward the economy. We need to fill the talent gaps, ensuring a sustainable future for our profession,” he says.
Following the Chief Executive’s third Policy Address last October, the Institute was pleased to see that the government adopted its proposal of updating the government’s “Talent List” to attract talents from more professional service sectors. It had advocated for the inclusion of the accounting profession in the Talent List with the goal of addressing the talent shortage in the profession.
“We look forward to the government expanding the talent pool for the profession to maintain service quality. An important aspect of this initiative is that it will bring in people from different backgrounds. Having people from diverse backgrounds and cultures working together, making great things and coming up with new ideas can move the profession forward,” says Au.
While government support is welcomed, Au points out that the Institute has long played its part to support talent attraction, mentioning its collaborations with the education sector, including the Education Bureau, schools and tertiary institutions. The goal, he says, is to encourage the next generation to start a CPA career by helping them understand how the profession has contributed to the development of Hong Kong’s economy in the past, and how it will continue to do so in the future. “This will give them a sense of purpose, as they start to realize how the profession is driving Hong Kong’s economy and Hong Kong’s role as an international financial centre.”
A promising career
Au’s unique perspective of transformation extends beyond his work, and is something he applies when appreciating films. “Many people watch movies as a way to relax or have fun, but when I watch a movie, I transform myself into the characters played by the actors, so that I can experience those different roles and perspectives, and understand the meaning behind the film,” he says.
Similar to characters in the film world, there is no shortage of roles played by CPAs. Au is adamant that drawing attention to this is one of the best ways for the profession to attract talent. “We must emphasize the diversity of accountants in terms of their careers. Other than an auditor and tax consultant, you can be an M&A advisor, a forensic accountant or a sustainability expert. With a professional accounting background there’s a wide range of roles open to you, including CEO,” he says. “The Institute will continue to focus on branding, so that the next generation of talent can acknowledge the promise that comes with these roles.”
Indeed, another path that those with an accounting background can take is IPO advisory, which Au has been associated with ever since he started working as an auditor in 1993. “China was opening up and allowed the first batch of state-owned enterprises to get listed in Hong Kong, one of them being Tsingtao Brewery,” he recalls. “My first project when I joined the firm was a B-share listing in China, and that was really interesting for me.”
Au says he quickly discovered the real purpose behind the work he was doing. “Besides supporting fundraising, I could help the company to transform and expand their operations. I knew that working in IPOs and the capital market was something I wanted to go into because I could support company transformations and support the growth of the company. Having such a mission is both eye-opening and really meaningful,” he adds.
A new level of opportunities
When thinking about the future of the Institute, Au is full of optimism, particularly as its crucial role in the development and implementation of the local sustainability reporting standards goes further. A proud commitment to sustainability has presented both the Institute and its members a major opportunity to evolve, he notes.
“We must emphasize the diversity of accountants in terms of their careers. The Institute will continue to focus on branding, so that the next generation of talent can acknowledge the promise that comes with these roles.”
“Sustainability itself is transforming and is only part of a business transformation. In a company’s business transformation there are different ingredients coming into it, and I think accountants can play a role in these areas too,” says Au. Members should also embrace the opportunity to work with different professionals, he adds, such as engineers and building surveyors, when it comes to measuring and disclosing information.
As the Institute continues to fulfil its new role, Au believes this year will see the Institute redoubling its efforts to empower, enable and engage members, the “Three Es” as he calls it. “For example, ever-changing technology forces us to reimagine the things we have done in the past and in the future, so we need to constantly adapt ourselves. The Institute can empower and enable members with digital tools to work efficiently and move with the times,” he says.
With the focus on sustainability reporting standards, and also member engagement, empowerment, and enablement, Au has been given another purpose. “We can support members wholeheartedly to move to another level, to ‘transform’ with the times, and to contribute even more to Hong Kong and its economy.”
On 12 December 2024, the Institute published HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Informationand HKFRS S2 Climate-related Disclosures (HKFRS SDS). The HKFRS SDS are fully aligned with the IFRS Sustainability Disclosure Standards, with an effective date of 1 August 2025.
