Hong Kong Taxonomy for Sustainable Finance

The Hong Kong Monetary Authority (HKMA) has published the Hong Kong Taxonomy for Sustainable Finance, a framework aimed at promoting green and sustainable finance in the local market. The taxonomy provides a clear definition of green products and covers 12 economic activities across sectors like power generation, transportation, construction, and water and waste management. It aligns with international frameworks and aims to reduce greenwashing risks while facilitating informed decision-making and finance flows. The HKMA encourages the financial sector to use the taxonomy to assess project greenness, develop sustainable finance products, and make disclosures. Additionally, the HKMA is launching a cloud-based platform for banks to assess the potential impact of climate-related physical risks on buildings in Hong Kong. This platform is part of the HKMA’s efforts to support the banking sector in climate risk management and enhance its capabilities in addressing climate-related challenges. By providing data and analytical tools, the platform will help banks better understand and prepare for climate scenarios, contributing to the overall sustainability and resilience of the financial system. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/05/20240503-3/