On 15 July 2021, Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group (Steering Group), representing a critical mass of Hong Kong’s financial regulatory bodies, announced next steps to advance green and sustainable finance in the Special Administrative Region (the Announcement). According to the Announcement, the regulators will prioritize:

  • climate-related disclosures;
  • carbon market opportunities; and
  • a new cross-sector platform to help the financial industry manage climate change-related risks and opportunities.

In this Blog Post, we highlight key aspects of the Announcement and points for market participants to consider as Hong Kong moves toward a more sustainable future.


Continue Reading Mandatory Climate Disclosures, Carbon Markets Attract Regulatory Attention in Hong Kong

As part of national plans to cut carbon emissions, the UK Cabinet Office released a Procurement Policy Note on 5 June 2021 (“PPN 06/21“, or the “PPN“): this mandates the assessment of Carbon Reduction Plans by UK central government departments as part of the procurement of large public contracts.

Key aspects of the Public Procurement Notice

  • UK Procurement Policy Note 06/21 requires a bidder for large public contracts (exceeding £5 million per annum) to produce a Carbon Reduction Plan (CRP) setting out how it intends to achieve ‘net zero’ carbon emissions by the year 2050 (compared to 1990 levels).
  • This relates to regulated contracts for goods, services and/or works awarded by UK central government departments, their executive agencies and non-departmental public bodies.
  • This will apply to procurement processes commenced on or after 30 September 2021 – bidders should take steps now to prepare for compliance, which might require new data collection and reporting procedures.


Continue Reading ESG and UK Public Procurement: Carbon Reduction Requirements

In our blog post on 13 May 2021, we discussed the consultation papers published by the China Securities Regulatory Commission (“CSRC”) on proposed ESG-related amendments to the disclosure rules applicable to listed companies. On 28 June 2021, the CSRC published the final set of amendments (“Final Amendments”) to the disclosure rules applicable to annual reports and half-year reports, respectively, together with relevant explanations to the amendments (“Explanations”).

Continue Reading China Publishes Environmental and Social Disclosure Rules for Listed Companies

Hong Kong’s Securities and Futures Commission (SFC) has issued new guidelines on enhanced disclosures required for Hong Kong-authorised funds incorporating environmental, social and governance factors as their key investment focus (ESG funds).

The new guidance, announced on 29 June 2021 via a circular (the Circular), will take effect from 1 January 2022, supplanting existing guidelines last updated in April 2019.


Continue Reading New Hong Kong Guidelines on Enhanced Disclosures for ESG Funds in 2022