The Hong Kong Monetary Authority (HKMA) has issued another document entitled White Paper on Green and Sustainable Banking on June 30, 2020. The objective of the paper is to present initial thinking on the HKMA’s supervisory approaches to address climate-related issues. We see this paper as an excellent resource to understand the future policy direction of supervisory expectations in Hong Kong. The paper has also laid out nine guiding principles to help AI’s implement a framework for managing the risk and opportunities brought by climate change.
The White Paper also lays out a clear regulatory roadmap with dates and upcoming activities. The next step will be a consultation on supervisory expectations in the first half of 2021 followed by a second self assessment later in 2021.