Hong Kong SAR’s Cross-Agency Steering Group announces key initiatives to support sustainable finance

On 8 January 2024, the Green and Sustainable Finance Cross-Agency Steering Group (the Steering Group) announced its key initiatives for the year ahead.

The following three key initiatives are aiming “to capture financing and investment opportunities from the Asia-Pacific Region’s low carbon transition”:

Adopting International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards locally as appropriate

A new working group, co-led by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) reported to the Steering Group on the progress made in developing a roadmap on the “appropriate adoption” of IFRS Sustainability Disclosure Standards. This roadmap will cover four key areas: (a) sustainability reporting, (b) assurance, (c) data and technology, and (d) capacity building. The working group intends to start engaging with stakeholders to identify the Hong Kong-specific circumstances that should be considered when implementing the international reporting standards (see our previous blog post). 

Leveraging technology to support sustainability reporting and data analysis

Green fintech has been included as a priority area. The Steering Group announced that it plans to hold an event in Q1 2024 to highlight the uses of green fintech in scaling the sustainable finance market. The Steering Group will also update its website, including the Climate and Environmental Risk Questionnaire for Non-listed companies in digital format and new greenhouse gas emissions calculation and estimation tools jointly developed with the Hong Kong University of Science and Technology.

Supporting the development of transition finance to consolidate Hong Kong’s role as a leading sustainable finance hub

The Steering Group has cited transition finance as a priority area for 2024. The Steering Group flagged that it intends to broaden the development of the Hong Kong local taxonomy to cover “transition activities” as well as work with regional and international partners on capacity building and “elevate Hong Kong’s thought leadership in the net-zero transition”.

What is the Green and Sustainable Finance Cross-Agency Steering Group?

Established in May 2020 and made up of the main financial regulatory bodies in Hong Kong as well as the Financial Services & Treasury Bureau, the Insurance Authority and the Accounting and Financial Reporting Council (AFRC), the Steering Group is focused on accelerating the growth of green and sustainable finance in Hong Kong. Since its inception, the Steering Group has been setting out a direction for regulatory policy.