Editorial | Hong Kong has role to play in tackling climate crisis
- City’s businesses will be required to meet international standards on sustainability, but this will require funding from both the public and private sectors
The world will need US$3 trillion in private and public funding annually to fight climate change if we are to achieve net-zero greenhouse emissions, reverse nature loss and restore biodiversity by 2050, the World Economic Forum (WEF) says.
Some of that will need to come in the form of sustainable financing from lenders, which requires companies to detail their net-zero carbon emission plans.
To facilitate that, Hong Kong aims to be among first movers globally to require companies to match their sustainability disclosures to International Sustainability Standards Board (ISSB) benchmarks.
The development offers an important way for businesses to join the front against climate change.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu told the inaugural One Earth Summit that the city would produce a road map within the year for a transparent, well-defined pathway on sustainability reporting for business.
For disclosure and sustainability efforts to be truly effective requires everyone to adhere to the same clear, high-quality standards. Once those exist, businesses can bake them into regular operations and scale to help meet climate change head on.