International Experiences in Green Finance Development

41 Evolution of Green and Sustainable Finance Policies in Hong Kong Time Policy Content Institution Oct 2020 Consultation Paper on the Management and Disclosure of Climate-related Risks by Fund Managers This consultation document requires fund managers to take climate-related risks into consideration in their investment and risk management processes as well as to make appropriate disclosures to meet investors’ growing demand for climate risk information and to combat greenwashing. SFC Dec 2020 The Strategic Plan This Strategic Plan aims at consolidating Hong Kong’s position as a leading green and sustainable finance and risk management center. It has six key focus areas, and the CASG also agreed to implement five near-term action points. CASG May 2021 Green and Sustainable Finance Grant Scheme This Scheme is a three-year program announced in the 2021-22 Budget, aiming to support green and sustainable bonds issuance and lending in Hong Kong. HKMA May 2021 The Pilot Insurance-linked Securities Grant Scheme This Scheme aims to attract and incentivize insurers and sponsors to issue insurance- linked securities (ILS) in Hong Kong. IA Nov 2021 Principles for Adopting Sustainable Investing in the Investment and Risk Management Processes of Mandatory Provident Funds (MPF) Funds The Principles lay out a high-level ESG integration framework for trustees of MPF, the investment vehicles for the Hong Kong’s mandatory retirement protection scheme, across four key elements: governance, strategy, risk management and disclosure. MPFA