The Hong Kong Monetary Authority (HKMA) is apparently planning to speed up proposals to require financial organisations to disclose their climate change-related financial risks.
According to Regulation Asia, HKMA executive director Darryl Chan said mandatory disclosure requirements could be introduced in Hong Kong as early as 2022. Climate change-related disclosures were previously meant to become mandatory by 2025.
The new requirements would be in line with standards established by the G20’s Climate-Related Disclosures Task Force and would apply to banks, brokerages, insurers and listed firms.
Chan warned that Hong Kong should not take a ‘one size fits all’ approach to mandatory climate disclosures and noted that small and midsize banks may not be able to meet the requirements at the same pace as bigger multinationals.
The HKMA director also remarked that Hong Kong was working alongside the People’s Bank of China (PBOC) and the EU to establish a common taxonomy for green investments.
Chan added, “With 40% of loans in the Hong Kong banking system linked to the mainland, it would be appropriate for Hong Kong to adopt a common international standard on climate disclosure along with China.”
The PBOC recently revealed it will begin quarterly assessments of the green finance performance of 24 major Chinese banks starting 1 July this year.
Copyright © 2021 FinTech Global