Hong Kong weighs tougher climate finance disclosures for banks
Entities domiciled in the city have issued about US$150 billion of labelled debt based on environmental, social or governance metrics since 2020
Hong Kong's financial regulator, the Hong Kong Monetary Authority (HKMA), plans to consider mandating banks to disclose more information on climate finance. The HKMA is set to conduct a survey in 2027 to understand how banks utilize its sustainable finance taxonomy. The taxonomy, released for public consultation in September, aims to classify projects that reduce CO2 emissions or protect against weather risks.
This includes six sectors: energy, transportation, buildings, telecommunications, risk management and response, and water. Climate-aligned deals, such as syndicated loans, notes and bonds, range from US$10 million to US$800 million in size. Hong Kong requires listed and unlisted financial firms to assess and manage climate risks, and some firms disclose issues that could materially impact cash flows and financial performance.
The city has also implemented a physical risk assessment tool to help companies manage climate risks.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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