ESG Products

HKMA

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

FTSE

FTSE Russell Launches First ESG Risk Adjusted Index

FTSE Russell has launched its first ESG Risk Adjusted Index, which is based on the FTSE UK index series and aims to reflect index trends while improving ESG characteristics and maintaining similar risk return characteristics

Since United Nations Global Compact put forward the concept of Environmental, Social and Governance, the financial industry has always been an important driver of the development of ESG, and various types of ESG products have emerged in an endless stream. These products serve as a bridge between investors and companies, helping funds to be efficiently allocated to long-term assets.

Common ESG financial products include ESG bonds (such as green bonds, blue bonds, transition bonds, sustainable bonds, sustainable linked bonds), ESG funds and ESG indexes. Although these financial products are still facing problems such as greenwashing, they have indeed contributed to the development. Regulators are also trying to reduce the negative impact of these products.

ESG focuses on the improvement of long-term value, and ESG products are attracting long-term funds. In the current situation, balancing risk and return is an important topic, and ESG products will become an important choice for investors to allocate assets.