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Hong Kong  |  HKFRS S1 and HKFRS S2

The ESG report you already publish is not the disclosure HKFRS S2 asks for.

HKFRS S1 and HKFRS S2 are fully aligned to the ISSB global baseline. That moves Hong Kong reporting from a set of published indicators to a disclosure with requirements, evidence and scenario analysis behind it. EcoLedger builds that record.

HKFRS S1HKFRS S2HKEXIndustry metricsScope 1 to 3Scenario analysis
app.theecoledger.com  ·  Requirement tracker
S2  29(a)  Gross emissions, Scope 1 and 2Complete
S2  29(a)(i)  Scope 3 by categoryComplete
S2  22(b)  Climate scenario analysisIn progress
S1  27  Governance and oversightComplete
S2  29(f)  Internal carbon priceNot applicable
S1  B1  Industry based metricsComplete
84 of 91 addressedEvidence on 96 percent
What actually changes

From an ESG report to a sustainability disclosure.

Most Hong Kong issuers already publish an ESG report. The move to HKFRS S1 and HKFRS S2 does not replace that work so much as raise what has to sit underneath it.

Today, in the ESG report Under HKFRS S1 and S2
Published indicators against a fixed list
Disclosure against each requirement of the standard, with the datapoint and evidence that satisfy it
Scope 1 and Scope 2 emissions
Scope 1, Scope 2 and Scope 3 built out category by category, with data quality recorded
Qualitative discussion of climate risk
Climate scenario analysis and a documented assessment of climate resilience
A board statement on ESG oversight
Governance disclosure covering oversight, responsibilities, skills and controls
Sector commentary written each year
Industry based metrics expected for your sector, reported consistently year on year
Figures compiled for publication
Figures that keep their source data, calculation and evidence, ready for review and assurance

Rows marked with a green rule are the two areas Hong Kong issuers most often find are not already covered by existing ESG reporting.

The output

Start with what you actually have to publish.

A complete HKFRS S1 and HKFRS S2 disclosure, with the calculations, industry metrics and evidence that sit behind every figure in it.

  • S1Governance, oversight and the risk management process
  • S2Climate risks and opportunities, with scenario analysis to 2030 and 2050
  • GHGScope 1, Scope 2 and all fifteen Scope 3 categories
  • METRICSIndustry based metrics, climate targets and the assurance position
  • REGISTERAn IRO register and a datapoint coverage table behind the narrative
Sample Hong Kong HKFRS S1 and HKFRS S2 disclosure produced by EcoLedger
Inside EcoLedger

How the Hong Kong reporting record gets built.

01  Calculate

Build the inventory, including Scope 3.

Emissions are calculated with HKEX and IPCC factors matched to the reporting year, with IEA grid factors covering operations outside Hong Kong. Scope 3 is built out category by category rather than estimated in a single line.

  • HKEX and IPCC factors, refreshed each reporting year
  • IEA grid factors for mainland and international operations
  • All fifteen Scope 3 categories, with data quality flagged
  • Bulk import and reconciliation against the ledger
app.theecoledger.com  ·  Emissions
The EcoLedger greenhouse gas calculation engine
02  Consolidate

Report a group, not a spreadsheet per subsidiary.

Each entity holds its own activity data, metrics and narrative, and consolidates into group reporting on one dataset, so subsidiaries in different markets do not each produce their own version of the numbers.

  • Entity by entity data ownership with group level totals
  • Intensity ratios at entity and group level
  • One factor edition applied consistently across the group
app.theecoledger.com  ·  Consolidation
Group consolidation in EcoLedger
03  Disclose

Assemble the disclosure from the record.

Governance, strategy, risk management, scenarios, metrics and targets are assembled into a disclosure that links back to its supporting evidence, then exported in Word, PDF or HTML with footnotes intact.

  • Narrative drafted for your team to edit
  • Every statement carries the requirement it satisfies
  • Assurance provider, level and scope recorded against the report
app.theecoledger.com  ·  Disclosure builder
Assembling the Hong Kong disclosure in EcoLedger

Calculate. Consolidate. Disclose.

See how EcoLedger maps HKFRS S1 and S2
Where the time goes

Two parts of HKFRS S2 take most of the effort. Plan for them first.

Governance and risk management narrative can be drafted in weeks. Scope 3 and scenario analysis cannot, because both depend on information that has to be gathered from outside the reporting team.

Heavy lift one

Scope 3, category by category

Fifteen categories, each with a different data owner and a different level of confidence. EcoLedger tracks which categories are complete, which are estimated and which are not applicable, and records the data quality behind each one, so the first year sets a baseline the following years can improve on.

Heavy lift two

Climate scenario analysis

A documented assessment of resilience across a low, moderate and high warming pathway, with the assumptions written down. EcoLedger provides the methodology, the templates and drafted narrative, so the analysis can be reviewed, challenged and repeated next year rather than rebuilt.

The first HKFRS disclosure is an implementation. The next one should be a refresh.

Reporting perimeter

Start with the listed entity. Extend when the perimeter does.

The same underlying data supports a single Hong Kong reporting entity, a group with mainland and international subsidiaries, and additional disclosure frameworks where a group reports in more than one market.

Listed entity Group reporting Multiple jurisdictions Multiple frameworks
Entities

Subsidiaries, business units and group consolidation on one dataset.

Jurisdictions

HKFRS S1 and S2 alongside other local adoptions of the same ISSB baseline.

Frameworks

Reuse the same underlying data across related sustainability disclosures.

Your data On device optionEncrypted syncPasswordless accessExport at any time
What is included

Hong Kong reporting in EcoLedger.

  • HKFRS S1 requirements
  • HKFRS S2 requirements
  • Industry based metrics
  • Scope 1, 2 and 3
  • HKEX and IPCC factors
  • IEA grid factors
  • Climate scenarios
  • Materiality and IRO register
  • Climate targets
  • Evidence register
  • Group consolidation
  • Word, PDF and HTML output
Common questions
How do HKFRS S1 and S2 relate to the ISSB standards?

HKFRS S1 and HKFRS S2 are Hong Kong's sustainability disclosure standards and are fully aligned to the ISSB global baseline, IFRS S1 and IFRS S2. A disclosure prepared under them is therefore comparable with ISSB disclosures published in other markets, which is what international investors and index providers are reading it against.

We already publish an ESG report. How much of it carries over?

A good deal of the underlying information carries over, particularly governance narrative and Scope 1 and Scope 2 emissions. What usually has to be added is Scope 3 built out category by category, climate scenario analysis, industry based metrics for your sector, and the evidence trail behind each reported figure. EcoLedger maps what you already have against the requirements and shows what is still open.

Which emission factors are supported?

HKEX and IPCC factors across Scope 1, Scope 2 and Scope 3, matched to the reporting year rather than the current year, so prior year comparatives and restatements stay consistent. IEA grid factors cover mainland and international operations. The factor edition and data quality are recorded against every figure.

Can it handle a group with subsidiaries in several markets?

Yes. Each entity is configured individually, holds its own activity data and narrative, and consolidates into group reporting on one dataset, with intensity ratios available at entity and group level.

How does EcoLedger support review and assurance?

Each reported figure keeps its source data, calculation and attached evidence, and each disclosure statement carries the requirement it satisfies. Reviewers can move from a number in the report to the document behind it without raising a separate request, and the same structure is available to an external assurance provider. EcoLedger supports your own review process. It does not provide an assurance opinion.

See it with your reporting

Bring last year's ESG report. We will show you what HKFRS S2 still needs.

Bring your existing ESG report, an emissions spreadsheet or an open question about Scope 3. We will map it into the EcoLedger process and show you what the reporting record would look like.

EcoLedger is built on HKFRS S1 and HKFRS S2, Hong Kong's sustainability disclosure standards, which are aligned to the ISSB global baseline. It supports the preparation of your reporting and your own review and assurance process. It does not provide an assurance opinion.