The Board’s Role in ISSB Disclosures: Building Climate Oversight in Asian Banks and Strengthening Boardroom Capacity

Hong Kong, China, September 10-11, 2025. Only one-third of Asian banks currently have formal board-level oversight of climate risks — leaving a critical governance gap as climate change reshapes markets and financial stability. Strengthening board capacity is essential to resilience, credibility, and long-term growth.

To respond to this challenge, the Alliance for Green Commercial Banks convened board directors and senior executives from member banks for a high-level exchange on how to bring climate oversight into the boardroom. The session combined practical insights, governance tools, and regulatory perspectives to help boards move from awareness to action.

Hong Kong Financial Research Institute of Bank of China, the MSCI Sustainability Institute and HKU Jockey Club Enterprise Sustainability Global Research Institute released a joint research report titled “The Asian Way: Sustainable Finance Market Outlook in Southeast Asia (“SEA”) and the Role of Hong Kong” reveals that 75% of SEA organisations increased their sustainability investment in the past year, and 86% plan to expand further over the next five years. To do so robust, comparable and verifiable sustainability and climate data are needed.

Board members have a critical role to play in the oversight of sustainability and climate reporting.

Here’s what every board should remember when overseeing International Sustainability Standards Board (ISSB)’s IFRS S1 & S2 disclosure:
1️⃣ Move from sign-off to oversight – Boards must actively connect sustainability risks to business value, not just approve reports.
2️⃣ Use the Board Checklist -
✅ Prepare: Know your audiences, monitor regulations, integrate sustainability into strategy.
✅ Evaluate: Test quality, check the 4 core content areas (governance, strategy, risk management, and metrics and targets), spot red flags.
✅ Challenge: Ask the right questions, close gaps, verify data.
✅ Oversee: Embed expertise, assign responsibility, disclose governance.
3️⃣ Think beyond compliance – High-quality reporting builds trust, informs better decisions, and protects against greenwashing.

Key Highlights from the Climate Governance Bootcamp – September 10-11, 2025, Hong Kong

  • From theory to practice – Rebecca Brosnan, IFC-nominated Director at City Bank, shared how boards can integrate climate considerations into strategy, decision-making, and risk management, drawing on real-world boardroom experience.
  • A structured approach – Anne Kullman and Lopa Rahman introduced IFC’s Corporate Governance Methodology and Climate Governance Matrix, providing practical tools, specimen documents, and self-assessment guidance.
  • Navigating uncertainty – Simon C.Y. Wong led participants through climate scenario analysis, demonstrating how banks can assess risks and opportunities under different climate pathways.
  • Building boardroom skills – Francisco Javier Ramirez highlighted the expertise and accountability structures boards need to govern effectively in the face of climate risks.
  • Transparency & reporting – Ralitza Germanova, Bing Leng of the ISSB, and Yat Fei Lau of Bank of China (Hong Kong) discussed recent developments in sustainability and climate-related financial disclosures, emphasizing the board’s critical role in avoiding greenwashing.
  • Regulatory insights – Jason Au of the Hong Kong Monetary Authority (HKMA) shared trends and supervisory expectations around climate risk governance.

Looking Ahead

As financial markets continue to grapple with climate change, boards will play a decisive role in guiding banks toward resilience and sustainable growth. Equipping directors with the skills, tools, and perspectives to govern climate risks is no longer optional – it is fundamental to sound corporate governance and long-term value creation.

Share