From extreme typhoons and flooding in Asia, to the continuing rise of global temperatures and now the COVID-19 pandemic, it is hard to argue that these events pose zero threat to our livelihood and our generations to come.
Whether it is looking at the broader economy or from a risk assessment perspective, governments worldwide are now standing at attention and pausing to think of new ways to help mitigate the negative impacts of climate change, and Hong Kong is no exception to that.
One of the most obvious ways would be to consider greening the supply chain from financing all the way to manufacturing and consumption. Experts now agree that ethical business practices and green financial investments can be powerful instruments to influence change. And with China’s recent announcement of its plans to become carbon neutral by 2060, Hong Kong is in a unique and perfect position to help deliver on that change, while also making a real impact on home grounds.
But for this to happen, we need professionals who are able to operate in a new interdisciplinary environment that marries subjects including environmental science, sustainability, finance and investment.
In this edition on green finance, we take a closer look at what we as educators can do to nurture talent, while delivering on research that will help to give Hong Kong a boost to become the region’s premier green finance hub. We will get to hear from seven distinguished leaders and experts who will share insights into where they think Hong Kong and elsewhere stand in terms of the development of green finance.
Christopher HUI, the Secretary for Financial Services and the Treasury of the HKSAR Government; Arthur YUEN, Deputy Chief Executive at the HKMA; Christine KUNG Head of International Affairs at the SFC; and Grace HUI, Head of Green and Sustainable Finance (Markets) at the HKEX, will talk about what the government, regulatory bodies and operators can do to accelerate green finance in the city. These include the introduction of best practices, policies, green financial instruments, and many others.
Next, we get to hear from experts from the non-governmental side, including MA Jun, the Chairman and President of the Hong Kong Green Finance Association; Albert IP, the Chairman of the World Green Organization; and Eric CORNUEL, the President of the European Foundation of Management Development. They will each share their views on how NGOs and educators play a facilitator role in green finance.
Our very own faculty will also share some cross-disciplinary insights on the subject. Professor Christine LOH, Chief Development Strategist of the Division of Environmental and Sustainability at HKUST and former Undersecretary for the Environment of the HKSAR Government will discuss how China’s new development offers a path worth pursuing by all. Then the brilliant minds of our Finance Department will share their expertise on subjects, including green finance research written by Professor ZHANG Chu; how weather derivatives could be a financial solution to manage climate-related risks by Professor CHEN Zhanhui and Professor George PANAYOTOV along with PhD student CHU Zhuang. And last but not least, how climate change related risk is now a systemic and unpriced risk, authored by Professor Entela BENZ-SALIASI.
With all these valuable insights and studies, we hope to contribute to the conversation on what Hong Kong needs to do to further grow into the premier green finance center, not just within the city, but in the Greater Bay Area and beyond.
Professor TAM Kar Yan
Dean of HKUST Business School