Sustainable Finance Work Plan
Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group (CASG) released a sustainable finance work plan aimed at consolidating Hong Kong’s position as a leading sustainable finance hub.
CASG is led by the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC). It aims to coordinate the industry’s ability to respond to climate risks and accelerate the development of green finance.
Key Elements of the Work Plan
CASG plans to carry out sustainable finance work in three aspects:
- Establish a world-class regulatory system. CASG will adopt the IFRS S1 and IFRS S2 guidelines issued by the International Sustainability Standards Board (ISSB) and consider the actual situation in Hong Kong to establish a sustainable roadmap.
- Promote net-zero transition. CASG plans to provide sustainable training for companies, improve their technological innovation capabilities, and continue to disclose climate-related data resources. At the same time, CASG will also work with stakeholders to develop a blueprint for Hong Kong’s green financial technology to enhance the vitality and competitiveness of the economy.
- Develop sustainable financial products. CASG has included transitional finance into its scope of work and hopes to establish an international carbon market in Hong Kong to provide sustainable financial products for Asia and the world.
CASG believes that climate transition brings huge investment opportunities. In order to improve market efficiency, CASG will continue to strengthen sustainable development measures and promote Hong Kong to become a green fintech hub.
CASG’s Response to ISSB Guidelines
After the ISSB issued two disclosure guidelines, CASG said it would gradually align with the global benchmark. CASG believes that high-quality and comparable sustainability disclosures are very important for corporate climate risk assessment and business development, and the sustainability guidelines launched by the ISSB can help companies obtain sustainable financing.
In addition, CASG hopes that financial institutions in Hong Kong can effectively allocate funds and reasonably price sustainability-related risks, and play a leading role in sustainable financial development in Asia.