Featured Product

    HKMA Sets Out Key Focus Areas of Sustainable Finance Strategy

    December 17, 2020

    HKMA announced that the Green and Sustainable Finance Cross-Agency Steering Group has set out the green and sustainable finance strategy for Hong Kong. The strategic plan sets out six key focus areas: strengthening climate-related financial risk management; promoting the flow of climate-related information at all levels to facilitate risk management, capital allocation, and investor protection; capacity building for the financial services industry; exploring initiatives to facilitate capital flows toward green and sustainable causes; capitalizing on the Mainland opportunities to develop Hong Kong into a green finance center in the Guangdong-Hong Kong-Macao Greater Bay Area; and strengthening regional and international collaboration.

    The Steering Group welcomed the announcement that Hong Kong will strive for carbon neutrality before 2050 and stands ready to support the strategies and measures that will come out of the updating of the Hong Kong’s Climate Action Plan in mid-2021. The Steering Group agreed to the following key near-term action points:

    • Climate-related disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations will be mandatory across relevant sectors no later than 2025. Building on the existing requirements of listed companies to provide climate-related disclosures for financial years commencing on or after July 01, 2020 as well as on initial steps taken with respect to banks and asset managers, the Steering Group will take active steps to enhance climate-related disclosures of financial institutions, including banks, asset managers, insurance companies and pension trustees, and increase the coverage of mandatory disclosure as soon as practicable.
    • The Steering Group aims for the adoption of the Common Ground Taxonomy, which will be developed by mid-2021 by the International Platform on Sustainable Finance (IPSF) Working Group on Taxonomies; this working group is co-led by China and EU.
    • The Group will support the IFRS Foundation’s proposal to establish a new Sustainability Standards Board for developing and maintaining a global, uniform set of sustainability reporting standards; it will also support complementary efforts by other standard-setting organizations to converge sustainability reporting standards globally.  
    • Work will done to promote climate-focused scenario analysis to assess the impact on financial institutions under different climate pathways, such as through the pilot climate risk stress testing exercise for banks and insurers and the use of scenario analysis by large asset managers. 
    • Another plan is to establish a platform to act as a focal point for financial regulators, government agencies, industry stakeholders, and the academia, to coordinate cross-sectoral capacity building and thought leadership, as well as to act as a cross-sectoral repository of green and sustainable finance resources.

    Keywords: Asia Pacific, Hong Kong, Banking, Climate Change Risk, ESG, TCFD, Reporting, IPSF, Reporting, Disclosures, Stress Testing, Sustainable Finance, HKMA

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267