Cross-Agency Steering Group welcomes first sector-based operational guide on transition finance

On Fri, 15 May, the Hong Kong Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) endorsed the publication of the Transition Finance Operational Reference Guide – Phase 1 Report: Mobilising Finance for the Transition of the Technology Sector (the Report). This document was formulated by an industry working group operating under the Steering Group’s transition finance workstream to advance transition finance development within Hong Kong.

Strategic Framework and Sector Focus

Aligned with the Steering Group’s strategic priorities for the period 2026 to 2028, the Report offers a practical toolkit for financial institutions and corporates to operationalise global frameworks. The working group selected information and communications technology ("ICT") as the pilot sector, with Phase 1 concentrating on entity-level financing and investment. This approach explores how general corporate-purpose financing can underpin a company’s overall climate transition strategy.

Implementation Guidance and Future Work

The Report delineates a core set of entity-level transition-related information and metrics material to the ICT sector, highlighting commonalities across international frameworks. To address market feedback regarding implementation challenges, the document incorporates case studies illustrating the practical application of international principles. Subsequent phases will expand to cover activity-level financing, investment, stewardship, and engagement.

Regulatory Commentary

Mr Eddie Yue, Co-Chair of the Steering Group and Chief Executive of the Hong Kong Monetary Authority, expressed encouragement regarding the Report, citing the industry’s dedication to developing practical transition finance approaches. Ms Julia Leung, Co-Chair of the Steering Group and Chief Executive Officer of the Securities and Futures Commission, stated that the reference guide demonstrates the Cross-Agency Steering Group’s commitment to translating high-level international principles into actionable, objective guidance. She emphasized the initiative’s role in facilitating better disclosures, fostering efficient capital allocation, and aligning stakeholder expectations.

About the Steering Group

Established in May 2020, the Steering Group is co-chaired by the Hong Kong Monetary Authority and the Securities and Futures Commission. Membership comprises the Financial Services and the Treasury Bureau, the Environment and Ecology Bureau, the Insurance Authority, the Mandatory Provident Fund Schemes Authority, the Accounting and Financial Reporting Council, and Hong Kong Exchanges and Clearing Limited. The Group’s mandate involves coordinating the management of climate and environmental risks to the financial sector, accelerating green and sustainable finance growth in Hong Kong, and supporting Government climate strategies.