Hong Kong ESG Overview
Hong Kong’s ESG regulatory policies are mainly formulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong, and many polices are based on the Hong Kong Climate Action Plan 2050.
As an international financial center, Hong Kong launches a series of green financial instruments and releases the Green and Sustainable Finance Grant Scheme to provide subsidies to the market. The Hong Kong government also issues green bonds to institutional investors and individual investors to increase public participation.
Hong Kong is regulating ESG development, such as setting climate information disclosure standards based on ISSB guidelines and requiring mandatory disclosure by listed companies. Hong Kong also establishes a green taxonomy to provide a standard framework for sustainable activities.
Future of Hong Kong ESG
Hong Kong plans to become the world’s first jurisdiction to incorporate international sustainable information disclosure standards. The Hong Kong Institute of Certified Public Accountants has released a draft of sustainable financial reporting standards, and will launch mandatory climate disclosure by 2025 to provide standardized information for stakeholders.
As an international financial center, Hong Kong has rich experience in ESG financial products and has successfully issued tokenized green bonds, supporting the development of green fintech enterprises.
In terms of ESG education, Hong Kong has launched Green Week to promote participants’ understanding in ESG activities. Hong Kong also offers a pilot program for green and sustainable finance training, providing tuition subsidies for ESG courses and exams.
Hong Kong SFC Releases Guidance to Asset Managers Regarding Due Diligence for ESG Products
Hong Kong Securities and Futures Commission releases guidance to asset managers regarding due diligence for ESG products
Hong Kong Releases Roadmap on Sustainability Disclosure
Hong Kong releases a roadmap on sustainability disclosure, aimed at outlining its plan to fully apply ISSB standards in the coming years
HK SFC Releases Code of Conduct for ESG Ratings and Data Products Providers
Hong Kong Securities and Futures Commission officially releases Code of Conduct for ESG Ratings and Data Products Providers
Hong Kong Monetary Authority Releases Climate-related Risk Governance Report
Hong Kong Monetary Authority releases a report on climate-related risk governance
Hong Kong Monetary Authority Releases Sustainable Finance Action Agenda
Hong Kong Monetary Authority (HKMA) releases the Sustainable Finance Action Agenda
HKICPA Releases Exposure Draft HKFRS S1 and HKFRS S2
The Hong Kong Institute of Certified Public Accountants releases Exposure Draft HKFRS S1 and HKFRS S2
HKMA Releases a Report on Using AI to Mitigate Climate Greenwashing Risks
The Hong Kong Monetary Authority releases a report on using AI to mitigate climate greenwashing risks
Hong Kong Launches Green and Sustainable Fintech Proof of Concept Funding Support Scheme
Hong Kong launches the Green and Sustainable Fintech Proof of Concept Funding Support Scheme