Hong Kong Monetary Authority

The financial institution conducts third-party assurance or verification of its target reporting. It assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body and delegates the responsibility for implementing the sustainability strategy to functions and teams within the institution. Additionally, it monitors its scope 1-2 emissions. However, no leading practices were identified for the financial institution with regard to Financing Climate and Nature protection and restoration, and Responsible business conduct.

The financial institution has an opportunity to disclose how it determines a living wage for the regions where it operates. It could provide a publicly available policy statement against bribery and corruption and include such clauses in contracts with its business relationships. It is recommended that the institution discloses that it links performance criteria for remuneration at the senior executive level to specific sustainability targets. Furthermore, it could monitor other Scope 3 categories, by category and transparently detail the methodology applied in their footprint calculation to enhance transparency. It has the opportunity to establish a transition plan for its operations, supply chain, and portfolio, and to ensure that scope 1-3 emissions are reduced in line with its interim targets.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Besides, the institution’s risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Additionally, it could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition. It could also provide an example of actions taken in the past three years to address salient human rights issues identified through risk assessments related to the products, services, and capital it offers to enhance transparency.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.