Hong Kong Boosts Sustainable Finance with IFRS Adoption and Technology Upgradesby Fintech News Hong Kong January 9, 2024
Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) announced key initiatives to strengthen the region’s position in sustainable finance.
The group welcomed the Accounting and Financial Reporting Council as a new member and outlined three major initiatives for 2024.
Firstly, the Steering Group plans to adopt International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, considering Hong Kong-specific requirements.
This move, supported by a working group led by the Financial Services Department, the Treasury Bureau, and the Securities and Futures Commission (SFC), focuses on sustainability reporting, assurance, data, technology, and capacity building.
Secondly, leveraging technology for sustainability reporting and data analysis is a priority. This includes showcasing green fintech use cases, launching website enhancements, and introducing new tools for greenhouse gas emissions calculation developed with the Hong Kong University of Science and Technology.
Lastly, the Steering Group is prioritising transition finance to solidify the leadership of Hong Kong in sustainable finance. This involves integrating transition considerations into policy work and collaborating with regional and international partners for capacity building.
Julia Leung, Co-Chair of the Steering Group and CEO of the SFC said,
“As an international financial centre, Hong Kong’s development of a roadmap for the local sustainability disclosures ecosystem is a key priority. Adopting the IFRS Sustainability Disclosure Standards locally requires collective action by both the public and private sectors.”
Eddie Yue, Co-Chair of the Steering Group and Chief Executive of the Hong Kong Monetary Authority (HKMA), said,
“Disclosure remains a key focus of the Steering Group. We are working on the local adoption of the IFRS Sustainability Disclosure Standards while taking steps to ensure the availability of the data, talents, capability and technologies needed for their implementation.”
Featured image credit: Edited from SFC