The Green and Sustainable Finance Cross-Agency Steering Group set out new priorities to bolster sustainable finance in Hong Kong, focusing on sustainability disclosures, transition finance, and green fintech development, the Hong Kong Monetary Authority (HKMA) said.
The Steering Group, jointly led by the HKMA and the Securities and Futures Commission, aims to enhance sustainability reporting by implementing the International Financial Reporting Standards Sustainability Disclosure Standards (ISSB Standards).
The measures align with the Roadmap on Sustainability Disclosure released by the Hong Kong Special Administrative Region (HKSAR) Government in December 2024.
Initiatives will include technical support, the development of a sustainability assurance framework, and capacity-building programs, with the goal of establishing a comprehensive sustainability disclosure system in the region.
To strengthen Hong Kong’s role as a sustainable finance hub, the Steering Group will expand the Hong Kong Taxonomy for Sustainable Finance to include transition elements and additional sustainable activities.
Sector-specific operational guidance for transition finance practices will also be developed, alongside the creation of a Transition Finance Knowledge Hub on the Steering Group’s website.
The Steering Group reaffirmed its commitment to positioning Hong Kong as a carbon trading hub in the Asia-Pacific region, building on developments from COP29, the 29th United Nations Climate Change Conference.
A significant focus will be on leveraging data and technology to promote sustainable finance. The Steering Group plans to launch the official Hong Kong Green Fintech Map in the first half of 2025, in collaboration with industry stakeholders.
The initiative aims to facilitate sustainable capital flows and improve transparency and access to information.
Public utility data tools, such as greenhouse gas emissions trackers and the Climate and Environmental Risk Questionnaire for SMEs and non-listed companies, will also be enhanced to support sustainability reporting and improve data availability.
These efforts build on previous initiatives, including the publication of the first phase of the Hong Kong Taxonomy for Sustainable Finance by the HKMA in May 2024, which covers 12 economic activities across four sectors.
The Prototype Hong Kong Green Fintech Map was introduced in March 2024 in partnership with Cyberport and Invest Hong Kong.
Under the government’s roadmap, large entities in Hong Kong are expected to fully adopt ISSB Standards by 2028.