The Sustainable Finance Action Agenda (“Action Agenda”) was launched on 21 October 2024 by the HKMA. With aims to solidify Hong Kong’s position as the sustainable finance hub in Asia and support sustainable development regionally and globally, the Action Agenda outlines eight goals across four areas, covering aspirations for both the banking sector and the HKMA.
Key goals under the Action Agenda include:
- Goal #1 – Net Zero Targets: Banks should strive to achieve net zero emissions in their operations by 2030 and in their financed emissions by 2050. Tentatively from 2030, banks should also regularly report to the HKMA on their transition plans on achieving net zero emissions on a ‘comply or explain’ basis.
- Goal #2 – Enhanced Transparency: Banks should enhance their disclosures regarding climate-related risks and opportunities, aligning with international sustainability frameworks including the sustainability disclosure standards of the International Sustainability Standards Board published in June 2023 and the Pillar 3 disclosure framework for climate-related financial risks to be issued by the Basel Committee on Banking Supervision.
- Goal #8 – Talent Development: The HKMA plans to address knowledge gaps in sustainable finance and strengthen the sustainable finance knowledge of practitioners by investigating into further training needs through its upcoming study “Capacity Building for Future Banking 2026-2030” and developing more training programs, including launching new modules under the Enhanced Competency Framework.
The HKMA will provide further guidance and consult the industry regarding these goals, including the development of a new Supervisory Policy Manual on transition planning.
The full Action Agenda, which sets out the details of each goal, is available here. You can also access HKMA’s press release on the launch here.
