Only 12.5% of large-cap firms disclose climate financial effects

A study found that 93% conducted some form of climate scenario analysis.

Only 12.5% of Hong Kong's large-cap companies fully disclosed the financial effects of climate scenarios in 2025, according to an Alaya Consulting report.

The study found that whilst the majority, or 93%, disclosed some form of climate scenario analysis, only 25% fully quantified physical risks.

In addition, only 19% fully quantified transition risks.

“Hong Kong large-cap companies are increasingly aware of climate scenario analysis, but the market now needs to move from narrative disclosure to numbers,” Tony Wong, founder of Alaya Consulting, said.

The report also found that some firms quantified their exposure to risks such as flooding and carbon pricing but did not translate these into potential impacts on revenue, operating costs, capital expenditure, asset values, profitability, or cash flows.

Meanwhile, amongst the city’s residents, around 95% believed climate change was happening, whilst 87% expressed concern, according to the Hong Kong Climate Awareness Index.

However, only 53% said they always or often took action to reduce their personal carbon footprint. 

The Alaya findings come as new climate-related disclosure requirements under Hong Kong Exchanges and Clearing's ESG Code begin applying to relevant large-cap issuers for financial years commencing on or after 1 January.

The firm said companies should prioritise quantifying climate risks, disclosing key assumptions and time horizons, and linking scenario analysis to financial planning, investment decisions, and capital allocation.