Green and sustainable finance

The International Affairs and Sustainable Finance (IASF) team coordinates the SFC’s efforts to build Hong Kong as a hub for green and sustainable finance in the Asia-Pacific region.

Hong Kong

In September 2018, the SFC published its Strategic Framework for Green Finance, which covers three major areas:

enhancing listed company, asset manager and investment product disclosures and their consideration of ESG factors, especially environmental and climate risks;
facilitating the development of green or ESG-related investment products, and supporting investor awareness and capacity building; and
promoting Hong Kong as an international green finance centre.

The SFC has established an internal cross-divisional working group to consider policies to develop Hong Kong as a green finance hub.

In May 2020, the SFC initiated the establishment of the Green and Sustainable Finance Cross-Agency Steering Group to accelerate the growth of green and sustainable finance in Hong Kong and support the Government’s climate strategies. Co-chaired by the SFC and the Hong Kong Monetary Authority, the group comprises of the Financial Services and the Treasury Bureau, the Environment Bureau, Hong Kong Exchanges and Clearing Limited (HKEX), the Insurance Authority and the Mandatory Provident Fund Schemes Authority.

International

The SFC has been collaborating with overseas regulatory counterparts to consider the development of sustainability practices in the financial sector. The SFC is the Vice-Chair of the Sustainability Task Force of the International Organization of Securities Commissions (IOSCO). It also leads the Sustainable Finance Working Group of IOSCO’s Asia-Pacific Regional Committee.

We also participate in the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), and are a member of the Advisory Group of the United Nations Sustainable Stock Exchanges Initiative. We are also a supporter of the recommendations of the Task Force on Climate-Related Financial Disclosures.

SFC initiatives

Surveys and reports

Survey on Integrating Environmental, Social and Governance Factors and Climate Risks in Asset Management (16 December 2019)

Circulars to licensed corporations

Circular to management companies of SFC-authorized unit trusts and mutual funds – Green or ESG funds (11 April 2019)

Circular to Licensed Corporations Engaged in Asset Management – Survey on Integrating Environmental, Social and Governance Factors in Asset Management (29 March 2019)

Green-related products

List of SFC-authorised green and ESG funds

Executives' speeches and remarks

Remarks at Bloomberg BuySide Summit 2019 by Ashley Alder (22 March 2019)

Green finance: an SFC view – Interview with Julia Leung (11 March 2019)

Investor education

Investor and Financial Education Council – Green Finance

Principles of responsible ownership (PRO)