VIDEO: ESG strategy for Hong Kong

Natalie Yiu    Mary Leung, CFA, Pat-nei Woo, Stephen Wong
07 Mar 2019
Category: ESG

Country or region: Asia Pacific (Overall)

Summary:
This recorded seminar qualifies for 1.0 CE credit under the guidelines of the CFA Institute Continuing Education Program. 
We encourage CFA Institute members to login to the CE tracking tool to self-document these credits. 
 
Following the release by FSDC of its ESG strategy proposal for Hong Kong, a panel hosted by FSDC, CFA Institute and HKSFA discusses its recommendations and the future of Hong Kong as an ESG investment centre. (Video: 1 hr 19 min.)
 

Abstract

ESG investing is one of the fastest growing areas of interest, having shifted from a niche area of investment into the mainstream. This is certainly an investment market segment that Hong Kong should put more focus on. While it is encouraging to see certain rules and initiatives in place to promote ESG reporting and integration, a strategy combining incentives and regulations needs to be developed to support the sustained development of the industry.

The Financial Services Development Council (FSDC) released a research report "Environmental, Social and Governance (ESG) Strategy for Hong Kong" to present the value proposition for ESG integration with the following key recommendations:
 

  • The HK Government should take the leadership role in encouraging public funds’ support for ESG integration
  • The Hong Kong Monetary Authority should scale up ESG requirements on their external investment managers
  • The Mandatory Provident Fund Schemes Authority should incorporate ESG factors into its trustee approval and monitoring process and to encourage trustees to take into account international ESG standards
  • The Securities and Futures Commission (“SFC”) should strengthen the emphasis on ESG through upgrading the Principles of Responsible Ownership to at least ‘comply or explain’
  • The SFC and the other regulators should provide more guidance on ESG thematic investment products
  • The Stock Exchange of Hong Kong should strengthen the emphasis on ESG for both listing applicants and listed companies
Leveraging the report, FSDC partnered with CFA Institute and HKSFA to organize an ESG forum on February 25, 2019. Industry experts explained the ESG strategy covered in the report, and shared insights on how Hong Kong could stay competitive on the ESG investment landscape.



Date of original publication:

02/25/2019

Video Title

ESG strategy for Hong Kong

Video URL
https://www.arx.cfa/videos/20190225 hkuspace.mp4



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Reader Comments

Pat Wah Patrick Lim
Apr 01 2019
Very interesting


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