Advertisement
HKMA to require banks to meet Hong Kong’s 2030-2050 targets on carbon emissions
The authority also says banks must ensure their lendings to companies and projects are net zero by 2050
Reading Time:3 minutes
Why you can trust SCMP
All banks in Hong Kong will need to be net zero in terms of greenhouse gas emissions by 2030, the Hong Kong Monetary Authority (HKMA) said, while they must also ensure that their lendings to companies and projects reach the same target by 2050.
The HKMA will also ensure that the Exchange Fund’s investment portfolio will be net-zero compliant by 2050 and said it would introduce more measures to promote the issuing of green bonds in the city.
The HKMA unveiled these goals, which are part of its “Sustainable Finance Action Agenda”, on Monday.
Advertisement
“Climate change is the defining challenge of our time,” said Eddie Yue Wai-man, the HKMA’s CEO.
Yue said Hong Kong as an international financial centre has a responsibility to facilitate sustainable fund flows while “ensuring that banks manage the risks associated with net zero properly”.
Advertisement
Sustainable finance, according to the World Bank, refers to the process of taking into account environmental, social and governance (ESG) factors when making investment decisions.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x