• ICMA publishes guidance for ESG data providers and other players in the ESG sector.
• Help in combating greenwashing in Hong Kong's sustainable finance market.

The International Capital Market Association (ICMA), a not-for-profit global trade association, has published a new set of guidelines called the Hong Kong Voluntary Code of Conduct for businesses that provide ESG (Environmental, Social, and Governance) ratings and data.

The new guidelines are aimed at improving transparency and governance in the ESG market following the Hong Kong Securities and Futures Commission (SFC) asking the ICMA to come up with one.

The guidelines are in line with the recommendations of the International Organization of Securities Commissions (IOSCO), addressing challenges like conflicts of interest.

The ICMA invited public consultation earlier this year from several market participants regarding the code.

Bryan Pascoe, Chief Executive of ICMA, said: “We are honoured to coordinate the voluntary code of conduct for Hong Kong, and grateful for the support of the Hong Kong Securities and Futures Commission and the involvement of key stakeholders from the private and public sectors. We will continue to contribute to best practices in the market, as well as Hong Kong’s wider sustainable finance initiatives”

Julia Leung, Chief Executive Officer of the SFC, added: “We congratulate the working group and ICMA for the successful finalisation of the VCoC. The voluntary code will establish a benchmark for the provision of high quality, reliable and transparent ESG information to combat greenwashing in Hong Kong’s growing green and sustainable finance ecosystem.”

The ICMA exhorts ESG ratings and data providers to adopt it to improve transparency, operate with integrity, and build trust among stakeholders.

For more information about the code, click here.

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Source: ICMA