Good Practices on Transition Planning

The Hong Kong Monetary Authority (HKMA) has issued a circular sharing key observations and good practices on transition planning, based on a survey of 38 authorized institutions (AIs) conducted in Q4 2023. This follows a circular issued in August 2023 outlining high-level principles for transition planning and the launch of the Sustainable Finance Action Agenda in October 2024, which sets a goal for banks to achieve net-zero emissions in their operations by 2030 and financed emissions by 2050. The HKMA is also preparing a Supervisory Policy Manual module on “Transition Planning” and encourages institutions to refer to the good practices provided in the annex. Further guidance may be issued in the future.

Resources: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20241216e1.pdf