The Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) met on 6 February 2025 to outline its key priorities for advancing sustainable finance in Hong Kong, according to HKMA. These priorities focus on sustainability disclosures, transition finance, and green fintech development.
Formed in May 2020, the Steering Group is jointly led by the Hong Kong Monetary Authority and the Securities and Futures Commission. The Steering Group will enhance sustainability reporting in Hong Kong by implementing the International Financial Reporting Standards Sustainability Disclosure Standards (ISSB Standards).
In line with the Roadmap on Sustainability Disclosure in Hong Kong published by the Hong Kong Special Administrative Region (HKSAR) Government, efforts will include providing technical assistance, developing a sustainability assurance framework, and offering capacity-building programs.
These initiatives aim to create a comprehensive sustainability disclosure system for the region.
To strengthen Hong Kong’s position as a sustainable finance hub, the Steering Group will work with the industry to expand the Hong Kong Taxonomy for Sustainable Finance. Transition elements and additional sustainable activities will be incorporated into the framework.
Operational guidance for sector-specific transition finance practices will also be developed. A Transition Finance Knowledge Hub will be established on the Steering Group’s website to further support these efforts.
Additionally, the Steering Group remains committed to establishing Hong Kong as a carbon trading hub in the Asia-Pacific region, following developments at COP29. For context, COP29 refers to the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change.
A major focus will be on leveraging data and technology to promote sustainable finance. The Steering Group plans to launch the official Hong Kong Green Fintech Map in the first half of 2025, in collaboration with the industry. This initiative seeks to facilitate sustainable capital flows and enhance transparency and accessibility of information.
The Steering Group will also enhance its free-for-all public utility data tools, including greenhouse gas emissions toolss and the Climate and Environmental Risk Questionnaire for SMEs and non-listed companies, to support sustainability reporting and improve data availability.
The initiatives build on prior developments, including the HKSAR Government’s launch of the Roadmap on Sustainability Disclosure in December 2024, which provides a timeline for large entities in Hong Kong to adopt ISSB Standards by 2028.
The first phase of the Hong Kong Taxonomy for Sustainable Finance, covering 12 economic activities across four sectors, was published by the Hong Kong Monetary Authority (HKMA) in May 2024. The Prototype Hong Kong Green Fintech Map was introduced in March 2024 in partnership with Cyberport and Invest Hong Kong.