The Hong Kong Monetary Authority (HKMA) has launched its Sustainable Finance Action Agenda, setting a bold framework to strengthen Hong Kong’s position as Asia’s leading sustainable finance hub. This initiative outlines a strategic vision for supporting sustainable development across the region and beyond, with an emphasis on climate action.
The agenda is built around eight goals, grouped into four key areas:
I. Banking for Net Zero
- Net-Zero Operations by 2030: Banks are required to work towards net-zero emissions in their own operations by 2030, with a target for financed emissions to reach net zero by 2050.
- Enhanced Transparency: Banks are also encouraged to improve transparency regarding climate-related risks and opportunities.
II. Investing in a Sustainable Future
- Net-Zero Investment Portfolio by 2050: The Exchange Fund’s investment portfolio aims to achieve net-zero emissions by 2050.
- Regional Support Through Investment: Strategic investments will support the transition to a low-carbon economy across the region.
III. Financing Net Zero
- Sustainable Financing Platform: Hong Kong will be developed into a leading sustainable financing platform.
- Catalyze Innovation: The HKMA will foster innovation in sustainable finance.
IV. Making Sustainability More Inclusive
- Support Comprehensive Disclosures: High-quality and comprehensive sustainability disclosures will be promoted.
- Close Talent and Knowledge Gaps: Efforts will be made to address talent and knowledge shortages in sustainable finance within the region.
Eddie Yue, Chief Executive of the HKMA, highlighted the urgency of the initiative, stating: “Climate change is the defining challenge of our time. 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.”
As the industry moves forward, the HKMA will provide ongoing guidance, tools, and industry support, adapting the agenda in response to market developments and feedback. This action agenda aims to position Hong Kong as a global leader in sustainable finance and climate change mitigation.
