On Feb. 24, HK MPFA revised ESG constituent fund disclosure criteria.
HK MPFA issued circular on enhancing disclosure requirements for ESG constituent funds (CFs); HK MPFA has published a list of approved ESG CFs since Dec. 2023.
Follows HK MPFA Nov. 2022 revised approval on MPF fund constituents, see #153746.
New Requirements
Circular aims to improve MPF scheme members' understanding of ESG CFs, provide guidance on disclosure criteria under the Code on disclosure for MPF investment funds.
If an ESG CF is a fund of funds, its underlying funds must disclose at least the same level of information in offering documents in order to ensure transparency.
MPF scheme brochures must disclose key ESG CF details, including investment focus, objectives, associated risks, and monitoring mechanisms to track ESG performance.
Annual governance reports must include yearly assessments of ESG CF performance; educational or reference materials should also be provided to scheme members.
Disclosures in existing ESG CFs' brochures must be updated by Sep. 30, 2025, while enhanced governance reporting applies to fiscal years ending on/after Nov. 30, 2024.
HK MPFA will assess disclosures, compliance confirmations before approving new ESG CFs; relevant data will be published on MPFA’s ESG webpage and MPF fund platform.
