Hong Kong's Green and Sustainable Finance Cross-Agency Steering Group recently discussed plans to tap into financing and investment opportunities associated with the low carbon shift in the Asia-Pacific Region.

During the meeting, the group welcomed the Accounting and Financial Reporting Council (AFRC) as a new member.

A key focus of the meeting was exploring the adoption of International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards.

A newly formed working group, jointly led by the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC), is tasked with creating a roadmap for this adoption, addressing sustainability reporting, assurance, data and technology, and capacity building. Stakeholder engagement will tailor the implementation of these standards to Hong Kong's context.

The steering group is also keen on using technology to boost sustainability reporting and data analysis. They plan to host an event in the first quarter of 2024 showcasing potential applications of green fintech to expand the sustainable finance market.

The steering group is set to enhance its website, introducing a digital version of the Climate and Environmental Risk Questionnaire for Non-listed Companies and new tools for calculating greenhouse gas emissions, developed in collaboration with the Hong Kong University of Science and Technology.

In 2024, the group aims to develop transition finance, reinforcing Hong Kong's status as a leading sustainable finance hub. Their strategy involves integrating transition considerations into policy work, expanding the local taxonomy, and collaborating for capacity building and thought leadership in the net-zero transition.

Steering group co-chair Julia Leung stressed the importance of a local roadmap for sustainability disclosures, calling for collective action from both public and private sectors. Co-chair Eddie Yue highlighted ongoing efforts to promote the development of transition finance in Asia, addressing the need to balance sustainability with economic development.

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Source: Insurance Business