In April this year, the HKMA is issuing its first standalone Sustainability Report 2022.

During the year, the HKMA has made notable progress in promoting sustainability across the HKMA’s key functions. The report aims at giving readers a more in-depth understanding of the HKMA’s strategy and priorities, from strengthening the climate-resilience of Hong Kong’s banking system and growing the green finance ecosystem, to being a responsible investor and a sustainable organisation.

Key Developments:

Building a Sustainable Financial System

• As a banking supervisor, the HKMA focuses on building banks’ resilience against climate risks and climate risk management capabilities, and accelerating their efforts in supporting the transition to a low-carbon economy.
• Cognisant of the potential risks that climate change may pose to the financial system, the HKMA incorporates a broader range of climate related considerations and scenarios into its analysis of financial risks and research studies to enhance its ongoing surveillance efforts.
• Through international collaboration, the HKMA contributes to international and regional policy dialogues in addressing climate change and its impact on financial stability, while gaining insights on strengthening the climate resilience of Hong Kong’s financial system.

Green and Sustainable Finance

• Green and Sustainable Finance Cross-Agency Steering Group: The current focus areas of the CASG’s work include capacity building and data availability under the Centre for Green and Sustainable Finance, taxonomies – developing a green classification framework to facilitate green finance flows, climate-related disclosures and sustainability reporting, and carbon market opportunities.
• The Alliance for Green Commercial Banks: launched by IFC and HKMA to bring together financial institutions, banking industry associations, research institutions and innovative technology providers in the region to develop a community of green commercial banks.
• Green finance solutions: channelling capital to green the real economy through issuance of green and sustainable bonds, Green and Sustainable Finance Grant Scheme, and Greentech development.

Responsible Investment

In the face of mounting challenges posed by climate change, the HKMA continues to step up its responsible investment (RI) momentum, notably by setting a 2050 net-zero emissions target in 2022, and refining its associated risk management efforts with an aim to bolster portfolio resilience and enhance long-term risk-adjusted returns for the Exchange Fund.

Source: HKMA