The HKMA has initiated the Sustainable Finance Action Agenda (Action Agenda), announcing a strategic vision to solidify Hong Kong’s role as the top sustainable finance hub in Asia.
This initiative underscores the region’s commitment to supporting sustainable development both locally and internationally.
With a comprehensive framework, the Action Agenda comprises four key areas segmented into eight goals. One of the pivotal areas, “Banking for Net Zero,” mandates all banks to achieve net-zero emissions in their operations by 2030 and address their financed emissions by 2050. This section also encourages enhanced transparency regarding climate-related risks and opportunities.
In the investment domain, the HKMA targets a net-zero emissions status for the Investment Portfolio of the Exchange Fund by 2050, aiming to foster a robust transition within the region through proactive investment.
The “Financing Net Zero” goal highlights HKMA’s aspiration to transform Hong Kong into the primary platform for sustainable financing in Asia and beyond. It places a strong emphasis on catalysing innovation within the sustainable finance sector.
Lastly, the agenda focuses on making sustainability more inclusive. It promotes high-quality and comprehensive sustainability disclosures and seeks to bridge talent and knowledge gaps in the region’s sustainable finance sector.
HKMA Chief Executive Eddie Yue highlighted the urgency of addressing climate change and the pivotal role Hong Kong plays in this global challenge. “Hong Kong, as an International Financial Centre and Asia’s sustainable finance hub, has the duty and capability to up our game in facilitating sustainable fund flows and ensuring that banks manage the risks associated with the net zero transition properly,” Eddie Yue said.
As part of the implementation process, the HKMA will provide further guidance and support tools for the industry. Additionally, it will continually review and refine the Action Agenda, adapting to market development and industry feedback.
Copyright © 2024 RegTech Analyst
Copyright © 2018 RegTech Analyst
