HONG KONG’S GREEN AGENDA

The Special Administrative Region is taking steps to achieve carbon neutrality before 2050

Increasingly common extreme weather conditions underscore the reality that the clock is ticking for the world to transition to a low-carbon environment.

The Hong Kong Special Administrative Region (SAR) has pledged to achieve carbon neutrality before 2050 and has an interim target of reducing Hong Kong’s carbon emissions by 50% before 2035 compared with 2005 levels.

Action plan

In order to achieve its pledge, the government has launched a series of initiatives. Key among them is the Climate Action Plan 2050, which was launched in 2021. This outlines four major decarbonisation strategies and measures: net-zero electricity generation, green buildings, green transport and waste reduction.

Of course, global protocols and standards inform the responses of individual countries. Among different measurements of carbon emission, the most commonly adopted is the Greenhouse Gas Protocol, established in 1998 as an international standard for corporations to account and report GHG emissions.

The newly released IFRS Sustainability Disclosure Standards, issued by the International Sustainability Standards Board, require listed companies to adopt the GHG Protocol to calculate carbon emission generally, unless there is any local regulatory requirement.

At the same time, in addition to reporting on their scope 1 and 2 emissions, large companies are now being pushed to calculate their scope 3 emissions, which include indirect emissions from their supply chain Scope 1 emissions are from sources owned or controlled by the company, while scope 2 emissions are generated indirectly from the consumption of purchased electricity, heat or steam This has led many companies to work with their suppliers to measure and reduce their emissions, as well as to educate them on the importance of emissions reduction.

International centre

With finance one of the key pillars of Hong Kong’s economy, accelerating the SAR’s development as an international centre for green and sustainable finance can help with the low-carbon transition.

In 2020, the Hong Kong Monetary Authority and the Securities and Futures Commission established the Green and Sustainable Finance Cross-Agency Steering Group (CASG) in order to coordinate the efforts of financial regulators, government agencies, industry stakeholders and academia in capacity building and policy development, and to serve as a repository for resources.

The government also launched the Green and Sustainable Finance Grant Scheme in May 2021 to provide subsidies for eligible bond issuers and loan borrowers Since then, more than 220 related debt instruments have received grants.

Talent is key

During the transition towards a low-carbon economy, there is a critical need to expand the talent pool and enhance the relative capacity for professionals from diverse backgrounds.

Christina So, head of ACCA Hong Kong and Greater Bay Area (GBA) lead notes that there is a growing need for finance professionals to understand the impact of ESG factors on businesses and their clients. ‘In a world where key stakeholders are demanding more from companies and their net zero objectives, green finance has become a ‘must-have’ skill for accounting and finance professionals to create long-term value, driving the migration to sustainable economies and businesses. With talent development at the core, we empower Hong Kong’s talent to upskill for a sustainable future and shape a better world ’

Climate Finance course

The collaboration between ACCA and CFA Institute marks a step forward in environmental, social and governance capacity building, helping professionals to get the necessary knowledge and skills to support the transition to a low-carbon and sustainable economy.

The ACCA and CFA Institute Climate Finance course provides an introduction to climate change and its related economic and environmental impacts, as well as climate solutions. It covers climate change, carbon pricing, sustainable business models, and climate risk and opportunities in the context of business as well as portfolio construction and investment analysis.

The course has been included as one of the Eligible Programmes under the Pilot Green and Sustainable Finance Capacity Building Support Scheme. Eligible applicants may claim up to 80% of the reimbursable fees (full-time students may enjoy up to 100% reimbursement).

Certificate in Sustainability for Finance

Individuals with expertise in sustainability are highly sought after To equip finance and accounting professionals with the sustainable development skills and enable them to tackle related challenges with confidence, ACCA has introduced the Certificate in Sustainability for Finance. This certificate covers key topics such as sustainability fundamentals, climate risk and reporting, the impact of the Sustainable Development Goals (SDGs), ESG performance and metrics, and sustainability analytics. For individuals who already possess professional accountancy qualifications, this certificate can be counted towards their Continuing Professional Development (CPD) hours, ensuring they remain up-to-date with the latest industry developments.

This course has also been included as one of the Eligible Programmes under the Pilot Green and Sustainable Finance Capacity Building Support Scheme Eligible applicants may claim up to 80% of the reimbursable fees (full-time students may enjoy up to 100% reimbursement).

About ACCA

We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.

Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 247,000 members and 526,000 future members in 181 countries.

ACCA now has over 29,000 members and 148,000 future members in China, with 11 offices in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Shenyang, Qingdao, Wuhan, Changsha, Hong Kong SAR and Macau SAR.

Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies.

Guided by our purpose and values, our vision is to develop the accountancy profession the world needs Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all.

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