Key Impact Points:

• Ambitious Net-Zero Targets: All banks to aim for net-zero operations by 2030 and financed emissions by 2050.
• Strategic Framework: Eight goals outlined across four key areas to strengthen Hong Kong’s position as a sustainable finance hub.
• Commitment to Industry Collaboration: HKMA to provide guidance, tools, and ongoing refinement based on market developments and feedback.

The Hong Kong Monetary Authority (HKMA) has unveiled its Sustainable Finance Action Agenda, setting a comprehensive vision to solidify Hong Kong’s role as the leading sustainable finance hub in the region and to support sustainable development across Asia and beyond.

The Action Agenda encompasses eight goals divided into four strategic areas:

I. Banking for Net Zero

1. Net-Zero Operations by 2030: All banks are to strive for net-zero emissions in their own operations by 2030 and in their financed emissions by 2050.
2. Enhanced Transparency: Banks are to improve transparency on climate-related risks and opportunities.

II. Investing in a Sustainable Future

3. Net-Zero Investment Portfolio by 2050: Achieve net-zero emissions for the Investment Portfolio of the Exchange Fund by 2050.
4. Regional Support Through Investment: Support the transition in the region through strategic investments.

III. Financing Net Zero

5. Sustainable Financing Platform: Develop Hong Kong into the premier sustainable financing platform for the region and beyond.
6. Catalyze Innovation: Foster innovation in sustainable finance.

IV. Making Sustainability More Inclusive

7. Support Comprehensive Disclosures: Promote high-quality and comprehensive sustainability disclosures.
8. Close Talent and Knowledge Gaps: Address talent and knowledge shortages in sustainable finance within the region.

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Eddie Yue, Chief Executive of the HKMA, emphasized the critical nature of this initiative:

“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. The Action Agenda sets out the HKMA’s vision in this regard, including where we are heading, when we endeavour to reach various milestones, and how we expect the industry to join hands with us in the sustainable journey.”

Moving forward, the HKMA will focus on implementing the Action Agenda by providing further guidance and supportive tools for the industry. It will also continuously review and refine the agenda as necessary, taking into account market developments and industry feedback.