Hong Kong unveils sustainable finance action agenda

Banks are required to achieve net zero in their operations by 2030.

The Hong Kong Monetary Authority (HKMA) has launched the Sustainable Finance Action Agenda, which sets out its vision to make Hong Kong a sustainable finance hub.

All banks are required to achieve net zero in their own operations by 2030, and in their financed emissions by 2050.

Banks are also called to enhance transparency on climate-related risks and opportunities.

The HKMA also set the goal of developing Hong Kong into the go-to sustainable financing platform of the region.

"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,” said Eddie Yue, the chief executive of the HKMA. 
     
The HKMA will work on implementing the action agenda. Authorities will review and refine the action agenda as and when necessary.

Overall, the action agenda outlined four areas: banking for net zero, investing in a sustainable future, financing net zero, and making sustainability more inclusive. Each of the areas have two goals each:

I. Banking for net zero

• All banks to strive to achieve net zero in their own operations by 2030 and in their financed emissions by 2050
• All banks to enhance transparency on climate-related risks and opportunities

II. Investing in a sustainable future

• Achieve net-zero emissions for the Investment Portfolio of the Exchange Fund by 2050
• Support transition in the region through investment

III. Financing net zero

• Develop Hong Kong into the go-to sustainable financing platform of the region and beyond
• Catalyse innovation in sustainable finance

IV. Making sustainability more inclusive

• Support high-quality and comprehensive sustainability disclosures
• Close talent and knowledge gaps in sustainable finance in the region