The Hong Kong Securities and Futures Commission welcomes voluntary compliance guidelines for ESG rating and data product suppliers.

The Securities and Futures Commission (SFC) of Hong Kong welcomes the publication of a set of voluntary guidelines by a working group led by industry leaders today for Environmental, Social and Governance (ESG) ratings and data providers operating in Hong Kong. The preparation of the voluntary guidelines is an initiative supported and promoted by the SFC. The guidelines were prepared under the leadership of the Hong Kong ESG Ratings and Data Providers Voluntary Code Working Group. The International Capital Market Association, which served as the secretariat of the working group during the development of the voluntary guidelines, will be responsible for overseeing and maintaining the guidelines. Following a one-month public consultation that ended in June 2024, the voluntary guidelines were successfully finalized and were based on international best practices recommended by the International Organization of Securities Commissions (IOSCO). This will help ensure that the guidelines are aligned and consistent with requirements introduced in other major jurisdictions. The guidelines are available in both Chinese and English. ESG ratings and data providers who agree to adhere to the guidelines will be required to publicly disclose a self-assessment document detailing the policies and actions they have taken to adhere to the principles of the guidelines. This document will also be published on the website of the voluntary guidelines. The information in the document will help licensed asset management companies and other end-users in Hong Kong to conduct due diligence and ongoing assessment of ESG products and providers they select for investment and risk management processes. Ms. Ashley Alden, the Chief Executive Officer of the SFC, said, "The voluntary guidelines are expected to establish a high-quality, reliable, and transparent benchmark for ESG information disclosure, helping to combat greenwashing in Hong Kong's increasingly thriving green and sustainable finance ecosystem. We encourage financial institutions, such as asset management companies, to consider whether ESG providers strictly adhere to these guidelines or other similar or more stringent standards when choosing ESG products or data providers." Mr. Bryan Pascoe, Chief Executive Officer of the International Capital Market Association, said, "We are honored to have coordinated the development of these voluntary guidelines for Hong Kong and are grateful for the support of the SFC and the participation of key stakeholders from the public and private sectors. We will continue to contribute to best market practices and broader sustainable finance initiatives in Hong Kong."