Green finance path Hong Kong’s best way to go
- In the wake of its own extreme weather events, the city can put its unique business advantages to work by helping both the Earth and corporate bottom lines
Protests demanding faster action against climate change were held in Asia, Africa, Europe and the United States as world leaders headed to the United Nations General Assembly last week. But even against a backdrop of extreme weather events, such as some of the heaviest rain and flooding witnessed in Hong Kong, many government and corporate officials continue to resist pressure, citing risks of instability and economic hardship if measures to fight climate change are implemented too quickly.
Green finance is increasingly recognised as a way out of such predicaments. It is good to see the city seize the opportunity to put its unique business advantages to work helping both the Earth and corporate bottom lines.
Earlier this month, Financial Secretary Paul Chan Mo-po said Hong Kong was issuing more than a third of all green and sustainable bonds in Asia, outpacing other regional financial hubs, including Singapore. Secretary for Environment and Ecology Tse Chin-wan recently called on local businesses to help strengthen the position of the city as an international finance centre to fund projects that meet the growing demand for innovative solutions, products and services.
In February, the government successfully issued HK$800 million (US$102.2 million) worth of tokenised green bonds.
The move is playing out in the job market. Those with green credentials are among some of the hottest candidates for companies focused on environmental, social and governance (ESG) issues.
Hundreds of ESG professionals are acquiring skills that sharpen Hong Kong’s edge in banking and finance, logistics and supply chain management. The city has raised the bar by requiring banks, listed companies, asset managers and insurers to comply with ESG disclosure rules by 2025.
Mainland authorities have also shown an unwavering commitment towards fostering green finance, which broadens opportunities here to channel investments to sustainable projects across Asia, including those in belt and road countries.
Societies often take paths of least resistance even when poor outcomes loom large. Green finance is a way Hong Kong can make easier and more lucrative choices.
