The Securities and Futures Commission (SFC) today announced its strategic framework to contribute to the development of green finance in Hong Kong (Note 1).
A priority will be to enhance listed companies’ consistent and comparable disclosure of environmental information, with an emphasis on climate-related risks and opportunities. The SFC will also work on ways in which asset managers make clear to investors how and to what extent they factor environmental criteria into their investment processes and risk assessments. These initiatives will complement and build onto existing initiatives to promote green bonds.
In addition, the SFC will work to facilitate the development of a wider range of green investment opportunities (Note 2) through internationally-compatible disclosure guidance to ensure the credibility of green product offerings in Hong Kong. It will also work closely with Hong Kong Exchanges and Clearing Limited on how it can develop and promote the listing and trading of green financial products including bonds, indices and derivatives.
“Hong Kong has an opportunity to be at the leading edge of global developments in green finance,” said Mr Ashley Alder, the SFC’s Chief Executive Officer. “Hong Kong is uniquely positioned to complement mainland China’s green development ambitions and to connect green finance flows between the Mainland and the rest of the world.”
Other elements of the SFC’s strategy include enhancing investors’ awareness and capacity building in collaboration with the Investor Education Centre, other financial regulators, industry associations and stakeholders. The SFC will also promote Hong Kong as a leading centre for green finance by participating actively in international initiatives and exploring opportunities for cooperation with environmental authorities.
Additional details are provided in a paper, titled Strategic Framework for Green Finance, available in English on the SFC’s website.