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 Plans to Issue Retail Green Bond
The Hong Kong government plans to issue its first retail green bond this year
Hong Kong Monetary Authority Releases Net Zero Plan
Net Zero Plan for Banking The Hong Kong Monetary Authority (HKMA) releases the Net Zero plan for the banking industry, which aims to assist banks
Hong Kong Releases Sustainable Finance Work Plan
Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group (CASG) released a sustainable finance work plan
Hang Seng Indexes Company Releases China Central SOEs ESG Leaders Index
Hang Seng Indexes Company announced the launch of the Hang Seng SCHK China Central SOEs ESG Leaders Index
Hong Kong Plans to Establish Green Taxonomy
Hong Kong Monetary Authority plans to establish a green taxonomy in order to strengthen the international green financial center
Hong Kong Issues Institutional Green Bonds
The Hong Kong Monetary Authority (HKMA) stated that it has successfully issued institutional green bonds based on the government’s green bond program, with a total value of $6 billion
HKEX Strengthens Climate Disclosure Requirements for Listed Companies
The Hong Kong Stock Exchange has released a consultation document on climate disclosure for listed companies, and plans to change the requirement of “Comply or Explain” to mandatory disclosure in 2024, and promote it to all listed companies in 2026
Hong Kong Issues Tokenized Government Green Bonds
The Hong Kong Monetary Authority (HKMA) recently announced that Hong Kong’s first tokenized government green bonds were successfully issued. The green bond is based on the government’s green bond plan and is also the first officially issued tokenized green bond in the world