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

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7307