HK SFC Climate Change And Finance

On Feb. 18, HK SFC CEO spoke on whats next for regulators.

  • HK SFC CEO Ashley Alder spoke at the Climate Risk and Green Finance Regulatory Forum 2021, on climate change and finance: what’s next for global regulators?
  • Speaking as chair of IOSCO on Feb. 11, speech published on Feb. 18, 2021.
  • Spoke on the need to retool the financial system to address the threat of climate change, focusing on some of the major efforts now underway to move that way.
  • Key Points
  • Sustainability and climate change disclosures are inconsistent and at times misleading.
  • Clear definitions have not been agreed at a global level, and can lead to greenwashing.
  • A substantive uptake of Task Force on Climate related Financial Disclosures is needed.
  • IFRS Foundation proposed to establish a new, global sustainability standard setting board alongside existing International Accounting Standards Board, IOSCO can help.
  • Another major initiative for IOSCO would create pathways to mandatory investment disclosures further up the chain-by asset managers and for investment products.
  • Must address concerns about ESG and ratings agencies which are largely unregulated.
  • In Hong Kong, they are paying particular interest to China and EU's goal to develop a common taxonomy under the International Platform on Sustainable Finance.
  • Setting a credible price on carbon, including a forward price, is a possible policy tool.

Regulators HK SFC
Entity Types B/D; Bank; Corp; IA; Ins
Reference Sp, 2/18/2021; ESG
Functions Compliance; C-Suite; Operations; Reporting
Countries Hong Kong
Products Banking; Corporate; Fund Mgt; Insurance; Securities
Regions AP
Rule Type Guidance
Rule Date 2/18/2021
Effective Date 2/18/2021
Rule Id 98526
Linked to N/A
Reg. Last Update 2/18/2021
Report Section International

Last substantive update on 02/22/2021