MPFA raises bar for disclosures on ESG funds

Staff reporter

The Mandatory Provident Fund Schemes Authority has told MPF scheme providers to disclose more information about environmental, social and governance funds amid Hong Kong's push to become a global hub for green finance.

The MPFA has mandated the trustees to disclose the focus and investment strategies of their ESG-themed funds, which is expected to help scheme members better understand them and make informed investment decisions.

Trustees should also reveal whether they have set mechanisms to measure the attainment of the focuses for their ESG funds and regularly assess the extent to which the funds have achieved these goals.

The information should be disclosed in the annual governance report to enable scheme members to assess whether the fund's performance has met expectations.

Speaking at a symposium held by the MPFA yesterday, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said Hong Kong has set a gold standard for green and sustainable finance, with over 220 ESG funds approved as of December, managing assets totaling HK$1.2 trillion.

MPFA chairwoman Ayesha Macpherson Lau said that the authority has developed principles for sustainable investing for the MPF industry, as the long-term impact of sustainability risks on the investments of the pension fund can't be ignored.