Hong Kong is accelerating its transition into Asia’s green finance hub, with publicly listed firms required to comply with international sustainability reporting standards by 2028. However, a shortage of environmental expertise and challenges in tracking carbon emissions threaten progress. 

The city is aligning corporate sustainability reporting with ISSB Standards, implementing a phased approach. Starting this year, firms on the Hong Kong Stock Exchange (HKEX) must disclose climate impact under a “comply or explain” rule, with full mandatory compliance for major listed entities by 2028. Yet, 60% of Hong Kong’s largest companies have not reported Scope 3 emissions, which account for 70% of their total carbon footprint. 

Experts emphasize that technology and upskilling employees are essential to overcoming compliance challenges. Financial institutions, in particular, must assess their investment portfolios’ carbon impact to align with sustainability targets. Meanwhile, companies dual-listed in Hong Kong and mainland China must navigate differing green disclosure regulations, adding complexity to compliance. 

To bridge the expertise gap, Hong Kong has granted statutory status to the Hong Kong Institute of Qualified Environmental Professionals (HKIQEP) and launched the Green and Sustainable Finance Capacity Building Support Scheme to train local talent. The government is also adjusting immigration policies to attract international green finance experts. 

The city’s voluntary carbon market, Core Climate, launched in 2022, is seen as a key tool in Hong Kong’s carbon neutral strategy. However, experts argue that introducing a mandatory carbon levy could drive deeper emissions reductions. Collaborations with carbon trading marketplaces in Shenzhen and Guangzhou aim to expand Hong Kong’s role in global carbon credit markets, reinforcing its position as a leading sustainable finance hub. 

Sources: 

https://www.chinadaily.com.cn/a/202503/14/WS67d3e2eca310c240449dae00.html 

https://bizhub.vn/hkstp-launches-greentech-hub-solidifying-hong-kong-as-an-international-leading-green-technology-and-finance-hub-post370056.html