Hong Kong’s steering group reveals new initiatives for sustainable finance opportunities
Hong Kong’s steering group reveals new initiatives for sustainable finance opportunities | Insurance Business Asia
Insurance News
Hong Kong’s steering group reveals new initiatives for sustainable finance opportunities
New member for the group also announced
Insurance News
By
Kenneth Araullo
Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group, in its recent meeting, outlined a work plan focused on harnessing financing and investment opportunities related to the low carbon transition in the Asia-Pacific Region.
According to a news release, the steering group also announced the addition of the Accounting and Financial Reporting Council (AFRC) as a new member.
A pivotal part of the agenda was the discussion on adopting International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, adjusted as necessary. A new working group, led jointly by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC), has been tasked with creating a roadmap for this adoption.
This roadmap will address four main aspects: sustainability reporting, assurance, data and technology, and capacity building. The group plans to commence stakeholder engagement to tailor the implementation of these international standards to the specific context of Hong Kong.
Another key initiative is leveraging technology to enhance sustainability reporting and data analysis. The steering group plans to host an event in the first quarter of 2024 to demonstrate potential applications of green fintech in expanding the sustainable finance market.
Upcoming enhancements to its website include a digital format of the Climate and Environmental Risk Questionnaire for Non-listed Companies, and new tools for calculating and estimating greenhouse gas emissions, developed in collaboration with the Hong Kong University of Science and Technology.
The development of transition finance was identified as a crucial goal for 2024, aiming to reinforce Hong Kong’s position as a leading sustainable finance hub. The steering group intends to integrate transition considerations into its policy work, expand the local taxonomy to include transition activities, and collaborate with regional and international partners for capacity building and thought leadership in the net-zero transition.
“As an international financial centre, Hong Kong’s development of a roadmap for the local sustainability disclosures ecosystem is a key priority. Adopting the IFRS Sustainability Disclosures Standards locally requires collective action by both the public and private sectors. We have been actively engaging with regional stakeholders and promoting technological solutions to support interoperability with global markets and alignment of common metrics, thereby bolstering Hong Kong’s position as a leading sustainable finance hub,” steering group co-chair Julia Leung said.
“Disclosure remains a key focus of the Steering Group. We are working on the local adoption of the IFRS Sustainability Disclosures Standards while taking steps to ensure the availability of the data, talents, capability, and technologies needed for their implementation. At the same time, we continue to work with local and international stakeholders in promoting the development of transition finance, which is particularly relevant to Asia where there is a pressing need to balance sustainability with economic development,” steering group co-chair Eddie Yue said.
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