Hong Kong Exchanges and Clearing (HKEX) has introduced HKEX Green Equity, a voluntary designation for listed companies.

It aims to help investors identify Hong Kong-listed firms with significant green business activities.

According to HKEX, the designation follows similar globally recognised frameworks. It also forms part of the exchange’s broader efforts to support the low-carbon transition.

Under the programme, independent Recognised Reviewers will assess eligible companies against the HKEX Green Equity Framework.

Specifically, the framework evaluates how much a company’s activities contribute to the green economy. HKEX has published a list of approved reviewers on its website.

Companies that meet the requirements will receive the designation and may use its mark.

However, the designation remains subject to ongoing compliance and annual reassessments.

“Investor demand for sustainable investment opportunities continues to grow, creating a greater need for credible and transparent ways to identify companies contributing to the green economy,”

said Paul Chow, Group General Counsel and Group Chief Sustainability Officer at HKEX.

The designation complements HKEX’s existing sustainability offerings, such as climate disclosures.

In addition, its Core Climate marketplace provides products including carbon credits and Green Electricity Certificates.

Furthermore, HKEX said the programme will help promote the adoption of the Hong Kong Taxonomy for Sustainable Finance in capital markets.

The Hong Kong Monetary Authority developed this taxonomy to classify environmentally sustainable economic activities.

Finally, the exchange said the designation will enhance the visibility of qualifying green businesses among global investors, with applications now open.

Featured image: Edited by Fintech News Hong Kong, based on image by lifeforstock via Magnific.