The Hong Kong Institute of CPAs has submitted its response to the Accounting and Financial Reporting Council (AFRC) Consultation on the Proposed Regulatory Framework for Sustainability Assurance in Hong Kong.
To support the development of a robust and workable regime, the HKICPA undertook extensive engagement with the profession. This included organizing two all-member seminars and two focused discussion sessions with representatives from relevant committees and industry stakeholders to review the proposals and gather practical feedback.
“A consistent regulatory framework, supported by effective registration, inspection and disciplinary arrangements, will help ensure that all assurance providers are subject to the same high standards.”
The HKICPA recognizes that independent assurance is a critical component of high-quality sustainability reporting. As sustainability disclosures become increasingly important for investment and decision-making, assurance plays a vital role in enhancing the credibility, reliability and comparability of such information, and in safeguarding against risks such as greenwashing.
Professional accountants are particularly well positioned to lead in sustainability assurance. With deep expertise in assurance methodologies, internal controls, governance and financial reporting, CPAs bring a disciplined, standards-based approach to evaluating sustainability information. As such information becomes more closely connected with financial reporting, the profession’s ability to assess consistency and linkages across both areas will be increasingly important in strengthening overall reporting quality and market confidence.
In parallel, a robust oversight mechanism is essential in underpinning confidence in sustainability assurance. A consistent regulatory framework, supported by effective registration, inspection and disciplinary arrangements, will help ensure that all assurance providers are subject to the same high standards in terms of competence, independence and quality management, strengthening the trust among investors and other stakeholders.
As sustainability reporting and assurance continue to develop, the HKICPA continues to support members and the broader market through a wide range of sustainability initiatives. These include developing globally aligned standards, providing practical implementation guidance, delivering professional training programmes, and advocating best practices. This all contributes to the HKICPA’s wider commitment to strengthening Hong Kong’s sustainability ecosystem.
“The HKICPA will continue to engage with regulators to support the development of
the sustainability assurance regime, while keeping members updated on the latest developments.”
Upcoming activities include the Sustainability Ethics Series, which equips sustainability assurance practitioners with a comprehensive understanding of the Ethics Standards for Sustainability Assurance and Other Revisions to the Code Relating to Sustainability Assurance and Reporting. The Institute will also hold the HKICPA Sustainability Forum, in addition to a series of learning events designed to help members strengthen capabilities and position themselves for emerging opportunities.
To stay connected with the latest sustainability developments, the HKICPA encourages members and stakeholders to visit its Sustainability Information Centre and join the HKICPA Sustainability Community for updates, resources, and knowledge-sharing opportunities. The HKICPA also offers the HKICPA Certificate on Sustainability Reporting, which focuses on the practical application of HKFRS S1 and HKFRS S2, with government subsidy available for eligible participants.
The HKICPA will continue to engage with regulators to support the development of the sustainability assurance regime, while keeping members updated on the latest developments and sharing insights as the landscape evolves.
