On 30 Sep 2025, the HKMA circulated guidance on voluntary tools for AIs to support corporate green transformation, emphasizing prudent risk management. The circular highlights the CASG Questionnaire 2.0 for climate data collection, tailored advisory services for SMEs, and Greentech applications to enhance sustainable finance practices, without imposing new regulatory requirements.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 30 Sep 2025, the Hong Kong Monetary Authority (HKMA) issued a circular sharing practical tools for Authorized Institutions (AIs) to support the green transformation of corporate customers, particularly SMEs, under prudent risk management principles, building on the Sustainable Finance Action Agenda launched in October 2024.
Practical Tools for Climate Risk Management
The HKMA observed that AIs may adopt the Green and Sustainable Finance Cross-Agency Steering Group’s Non-Listed Company Sustainability Questionnaire (CASG Questionnaire 2.0), which aligns with international standards, offers modular question sets by complexity, and provides an upgraded online platform for greenhouse gas emissions calculation. This tool enables AIs to assist customers in tracking sustainability performance, identifying improvement areas, and enhancing climate risk profiles.
Tailored Advisory Services and Greentech Applications
AIs are encouraged to design strategic engagement approaches based on customers’ climate risk profiles, including advisory services on climate resilience, emission reduction targets, transition strategies, and low-carbon technology investments. Additionally, AIs may leverage Greentech solutions to bridge data gaps, measure carbon footprints, structure tailored green financing products, and manage end-to-end product lifecycles, as detailed in the HKMA’s February 2025 Greentech Adoption Practice Guide.
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