Hong Kong’s monetary authority is considering additional climate-finance disclosures by banks. Executive director for banking policy Donald Chen told Bloomberg that a survey planned for 2027 would examine lenders’ use of the sustainable finance taxonomy. Its findings would inform how the framework might enter supervision; detailed requirements have not been decided.
The review follows a consultation on the taxonomy’s Phase 2B prototype, launched on 7 September. The proposal expands the classification from 25 to 39 economic activities. It combines ten new activities with changes to existing classifications and sets technical criteria for green and transition financing.
POTENTIAL SUPERVISORY ROLE
Chen identified disclosures about taxonomy-aligned investments or financing as one possible approach. He said the authority would consider the options after gathering information, rather than committing to a particular requirement now.
The draft covers technologies including battery manufacture and recycling, alongside transition pathways for aviation and iron and steel. These additions are intended to channel funding towards decarbonisation across the region.
ADAPTATION AND CONSULTATION
The adaptation framework initially prioritises shoreline protection and flood management. It introduces 24 measures, divided between 11 that qualify directly and 13 requiring a process-based assessment, reflecting the location-specific nature of physical climate risks.
Responses to the Phase 2B consultation are due by 7 October 2026. Banks then face the proposed 2027 survey, while any disclosure obligations remain dependent on the authority’s subsequent supervisory decisions.