Hong Kong Sustainability Reporting (HKFRS S1 & S2) Reporting Simplified with CCR

Hong Kong has taken a major step toward global sustainability alignment with the introduction of the Hong Kong Financial Reporting Standards (HKFRS) S1 and S2, issued by the Hong Kong Institute of Certified Public Accountants (HKICPA) in December 2024.

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Delivering Globally Aligned, Investor-Ready Sustainability Disclosures

Fully aligned with the International Sustainability Standards Board’s (ISSB) IFRS S1 and IFRS S2, these standards take effect on 1 August 2025, marking a milestone in Hong Kong’s leadership in sustainable finance.

The new framework establishes a globally consistent foundation for corporate sustainability and climate reporting, enabling investors and regulators to access clear, comparable, and decision-useful information.

The standards apply to publicly accountable enterprises (PAEs), including listed entities and regulated financial institutions such as banks, fund managers, insurance companies, and Mandatory Provident Fund (MPF) trustees.

CCR’s AI driven Sustainability Management Solution helps companies simplify HKFRS compliance through automation, data integration, and AI-driven analytics — enabling faster, more accurate, and assurance-ready sustainability disclosures.

Simplify HKFRS S1 and S2 Reporting with CCR’s Intelligence Platform

CCR enables Hong Kong organisations to efficiently manage and disclose their sustainability and climate data in full compliance with the new HKFRS S1 and S2 standards.

Through a unified, cloud-based system, CCR connects sustainability data, risk information, and financial metrics to deliver real-time insight and high-quality disclosure outputs.

Using CCR’s AI-powered solution, companies can:

  • Prepare complete sustainability and climate disclosure reports aligned with HKFRS S1 and S2.

  • Track and verify Scope 1, 2, and 3 GHG emissions in line with the GHG Protocol.

  • Map sustainability risks and opportunities to financial outcomes.

  • Generate investor-grade reports and dashboards with full traceability.

CCR’s Intelligence Platform is secure, hosted, and quick to implement — powered by AI assistants that streamline reporting, reduce manual effort, and ensure continuous alignment with HKICPA and HKEX requirements.

HKFRS S1 and S2: Reporting Focus Areas

HKFRS S1 – General Requirements

HKFRS S1 outlines the general principles for sustainability-related financial disclosures.
It requires entities to provide clear information about all sustainability risks and opportunities that may influence financial performance or value creation.

CCR supports compliance by structuring these disclosures across four key content areas — Governance, Strategy, Risk Management, and Metrics & Targets — enabling companies to link sustainability data directly to financial materiality and investor expectations.

HKFRS S2 – Climate-related Disclosures

HKFRS S2 focuses exclusively on climate risks and opportunities. It requires disclosure of an entity’s governance, strategy, and resilience to climate impacts — including quantitative metrics and targets for emissions reduction and transition planning.

CCR automates these processes by:

  • Integrating industry-based metrics from SASB standards.
  • Managing and verifying Scope 1, 2, and 3 GHG emissions.
  • Conducting scenario analysis to assess climate resilience.

Aligning reporting with TCFD and ISSB frameworks.

01

Environmental Focus Areas
  • Climate and GHG emissions: Track, forecast, and report Scope 1–3 emissions using CCR’s tech-suite.
  • Nature and biodiversity: Manage pollution, biodiversity loss, and resource dependencies through risk analytics.
  • Circular economy: Monitor material flow, waste reduction, and recycling targets.
  • Energy and water stewardship: Optimise energy efficiency and water use performance.

02

Social Dimensions
  • Labour practices, diversity, and inclusion.
  • Human rights and ethical sourcing compliance.
  • Health, safety, and wellbeing management.
  • Supply chain transparency and ESG due diligence.
  • Community engagement and social investment tracking.

03

Governance Integration
  • Board oversight and executive accountability.
  • Anti-bribery, privacy, and data governance.
  • Whistleblowing and integrity mechanisms.
  • Alignment of remuneration and ESG performance.

04

Strategic and Risk Framework Alignment
  • Materiality: AI-driven identification of financially relevant ESG risks.
  • Governance: Centralised tracking of oversight and accountability structures.
  • Strategy: Scenario analysis and transition planning integrated with business models.
  • Risk Management: Full alignment with relevant risk principles.

Comprehensive HKFRS Compliance with CCR

CCR provides a complete solution for managing all aspects of HKFRS S1 and S2 reporting.
It enables companies to build and integrate their environmental, social, and governance programmes, while seamlessly extracting data into formats compatible with multiple frameworks — including IFRS, ISSB, TCFD, CSDS, and ASRS.

CCR transforms sustainability reporting into a unified, insight-driven process — turning compliance into a strategic capability.

Understanding HKFRS S1 and S2 in Hong Kong

Hong Kong’s adoption of HKFRS S1 and S2 places it among the first global markets to align sustainability disclosure requirements with the ISSB Standards, reaffirming its role as a global leader in sustainable finance and governance.

Regulatory Roadmap and Implementation

  • 2025: All listed companies must report Scope 1 and 2 GHG emissions in line with IFRS S2.

  • 2026: Large-cap issuers begin mandatory reporting.

  • 2028: All publicly accountable entities (PAEs) to report under HKFRS.

CCR supports companies through every phasem automating data management, preparing disclosures, and generating assurance-ready reports.

Market Access and Investor Confidence

HKFRS alignment enhances global competitiveness by enabling transparent, comparable reporting across markets.
CCR’s solution ensures data compatibility with IFRS, CSDS, ASRS, and other regional and global frameworks, facilitating cross-border capital flows and ESG-driven investment.

Governance and Climate Strategy Integration

CCR embeds HKFRS’s four content areas directly into reporting workflows:

Governance

Board and management oversight of sustainability.

Strategy

Integration of climate opportunities into business planning.

Risk Management

Climate risks embedded into enterprise systems.

Metrics & Targets

AI-enabled performance tracking and validation.

Materiality and Financial Relevance

HKFRS applies a financial materiality lens consistent with IFRS S1 and S2.
CCR’s solution identify, evaluate, and visualise material sustainability issues, linking them directly to business risk and investor impact.

Future-Readiness and Broader Adoption

Even organisations not currently within the HKFRS reporting scope can prepare proactively.
Early adoption ensures supply chain readiness, investor trust, and long-term compliance alignment.
CCR’s scalable systems enable small and large entities alike to automate disclosure preparation, emissions tracking, and ESG documentation.

Common Challenges and CCR’s Solutions

CCR eliminates common barriers through:

  • Centralised ESG and financial data management.

  • AI automation and predictive analytics.

  • Scope 3 emissions modelling and traceability.

  • Multi-framework export and reporting.

  • Continuous regulatory updates (HKICPA + HKEX).

With CCR, Hong Kong companies move beyond compliance — achieving sustainable value creation, risk transparency, and international recognition.

Empowering Hong Kong’s Sustainability Future

At CCR, we understand that sustainability reporting is more than a regulatory obligation — it is a cornerstone of strategic governance and market leadership.
Our solution empowers Hong Kong businesses to move from compliance to performance, automating disclosure, improving transparency, and driving measurable sustainability outcomes.

Produce your sustainability reports aligned with HKFRS S1 and S2 using CCR.