Hong Kong is strengthening its ESG disclosure requirements for pension fund managers, reinforcing its commitment to sustainable finance. The Mandatory Provident Fund Schemes Authority (MPFA) has mandated 12 major fund managers, including HSBC and Manulife, to enhance transparency on ESG investment strategies and risk management. These updated standards are part of a broader effort to align Hong Kong’s financial sector with global sustainability goals and promote responsible investment practices. 

Under the new guidelines, fund managers must clearly outline their ESG strategies and risk management processes in investor brochures. They are also required to measure, monitor, and report ESG performance in annual governance reports. This regulatory shift impacts 47 ESG-related funds managing assets worth HK$36.6 billion (US$4.71 billion), ensuring greater accountability in the sector. 

The MPFA’s move is designed to help investors assess whether ESG-focused pension funds align with their sustainability expectations. “This approach enables scheme members to evaluate whether the funds’ ESG performance meets their expectations,” said Cheng Yan-chee, MPFA Managing Director. These measures will enhance market transparency and encourage responsible investment. 

The updated ESG disclosure requirements are part of a larger effort to green Hong Kong’s capital markets. By 2026, major listed companies will also be required to disclose supply chain emissions under Hong Kong Exchanges and Clearing rules. Additionally, the MPFA is set to launch the second phase of its eMPF Platform on March 5, aiming for a fully digital, paperless pension management system that reduces costs and environmental impact. 

With these developments, Hong Kong is positioning itself as a leader in sustainable finance, ensuring that ESG considerations are fully integrated into investment and pension fund management. These regulatory changes will play a crucial role in advancing the region’s carbon neutral strategy and reinforcing its position in the global ESG landscape. 

Sources: 

https://esgnews.com/hong-kong-tightens-esg-disclosure-standards-for-pension-fund-managers/ 

https://www.scmp.com/business/banking-finance/article/3299877/hong-kong-raises-esg-disclosure-standards-mpf-managers 

https://www.sustainablefinance.hk/market-regulator-tightents-esg-rules 

https://www.indexbox.io/blog/hong-kong-strengthens-esg-disclosure-standards-for-pension-fund-managers/