Hong Kong is moving a step closer to setting up a sustainability disclosure system, with authorities to publish a statement on the matter on Monday.

Chief Executive John Lee told the One Earth Summit, co-hosted by the World Economic Forum and the Hong Kong-based Institute of Sustainability and Technology, that the Financial Services and the Treasury Bureau will release a statement outlining its vision for a sustainability disclosure system fully aligned with international standards.

Authorities said information from companies on the risks and opportunities brought about by the climate are necessary for informed pricing and can lead to increased investment in sustainable products and activities.

The CE also highlighted Hong Kong's role as a financial centre for funds that meet environmental, social and governance criteria, known as ESG funds.

"At the end of last year, our Securities and Futures Commission had authorised more than 200 ESG funds, with total assets under management exceeding US$160 billion," he said.

"Those numbers more than demonstrate Hong Kong's ability to provide a flourishing environment for green finance and related investment products. They also cement our position as a leading regional force in promoting sustainable investment practices."

Lee said the administration will continue to issue green bonds, promote green fintech and assist companies and financial institutions in sustainability reporting.

Echoing Lee, Secretary for Financial Services and the Treasury Christopher Hui said the city would also launch a road map this year to transform the vision of a sustainability disclosure system into reality.

“Our vision is to be among the first jurisdictions to align the global sustainability international requirements standards to our local ones... as we consider it essential to showcase our commitments to reinforcing Hong Kong’s leading position on the international sustainability finance map.”

"We will adopt a holistic approach, which includes phased implementation of the local sustainability requirements for all financial services sectors, including listed companies and all regulated financial institutions,” Hui said.

The financial services and treasury chief noted that publicly accountable entities, such as listed companies and regulated financial institutions, would get priority in applying local standards to their operations, taking into account their preparedness and capabilities.

He also noted that authorities would make use of technology to improve sustainability data collection and reporting.
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Last updated: 2024-03-25 HKT 14:59