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The Securities and Futures Commission (SFC) today published its Agenda for Green and Sustainable Finance to set out further steps to support Hong Kong’s role as a regional green finance centre, having achieved the goals set out in its Strategic Framework for Green Finance (Note 1).
The SFC will continue supporting the development of green and sustainable finance in Hong Kong and the transition to a greener economy through improving the quality of information available, increasing transparency and building trust for investors. Its work will focus on:
- Enhancing corporate disclosures;
- Monitoring the implementation of and enhancing existing measures relating to environmental, social and governance (ESG) funds and expectations for fund managers; and
- Identifying an appropriate regulatory framework for any proposed carbon markets.
“Climate change and sustainability are cross-border issues which require a coordinated response, and Hong Kong has a critical role to play as a regional and international green finance centre,” said Mr Ashley Alder, the SFC’s Chief Executive Officer. “The SFC will continue to lead global regulatory development in this space to ensure that domestic policies and international standards are aligned.”
The SFC has been at the forefront of local and global efforts (Note 2) to develop an effective regulatory framework for green and sustainable finance to ensure that investors’ information needs are met whilst upholding market integrity and investor protection. Additional details are provided in a paper, Agenda forGreen and Sustainable Finance, which is available on the SFC’s website.
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Notes:
- Published in September 2018, the Strategic Framework for Green Finance covered five key areas: (i) enhancing climate-related corporate disclosures in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations; (ii) developing policies and guidance for asset managers’ disclosures and combatting greenwashing; (iii) facilitating the development of green-related investments; (iv) supporting investor awareness of and capacity building in green finance; and (v) participating in international sustainability initiatives with a view to promoting Hong Kong as an international green finance centre.
- The SFC’s key green and sustainable finance initiatives included:
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- Initiating the establishment of the Green and Sustainable Finance Cross-Agency Steering Group in May 2020 to accelerate the growth of green and sustainable finance in Hong Kong and support the Government’s climate strategies.
- Actively participating in international initiatives relating to sustainable finance, including the International Organization of Securities Commissions, the Network of Central Banks and Supervisors for Greening the Financial System and the Climate Disclosure Advisory Group of the United Nations Sustainable Stock Exchanges Initiative. The SFC is also a supporter of the TCFD Recommendations and a member of the International Platform on Sustainable Finance.
