In May 2019, the Hong Kong Monetary Authority (HKMA) introduced a three-phased approach to support the development of green and sustainable banking in Hong Kong. The HKMA has now released the common assessment framework under Phase 1, following feedback received from the banking industry. The common assessment framework will be used to assess the “greenness” of individual authorized institutions (AIs).
By way of recap, the HKMA announced during the Green Finance Forum held on 7 May 2019 that it will adopt a number of measures to support green and sustainable banking in Hong Kong and will roll out these measures in three phases:
Phase I – developing of a common framework to assess the “greenness baseline” of individual AIs.
Phase II – launching a consultation with the banking industry and other relevant stakeholders on the appropriate supervisory expectation to be set on green and sustainable banking. The aim is to define tangible deliverables to promote green and sustainable finance.
Phase III – following implementation of deliverables set under Phase II, the HKMA is expected to closely monitor and evaluate the progress of each AI under this phase.