The Hong Kong Monetary Authority (HKMA) has published the Hong Kong Taxonomy for Sustainable Finance. This taxonomy aims to define and classify environmentally sustainable economic activities, facilitating green finance flows. It provides a standardized framework for classifying financial products based on their environmental sustainability characteristics. The taxonomy covers 12 economic activities across 4 sectors, including power generation, transportation, construction, and water and waste management. HKMA plans to expand the taxonomy to include more sectors and activities. The taxonomy aligns with the Paris Agreement, offers proof against greenwashing, and offers interoperability with other taxonomies including ASEAN. It also recognizes the importance of the concepts of Do No Significant Harm (DNSH) and Minimum Social Safeguards (MSS).

Source: ESG Today