Climate change is one of the major risks threatening the well-being of mankind, and the financial sector is no exception. Authorized institutions (AIs) should gear up to meet the possible challenges arising from climate change, including the physical and transition impacts on their own operations and their clients.
The objective of this white paper is to present the initial thinking of the Hong Kong Monetary Authority (HKMA) about its supervisory approach to addressing climate-related issues, and to a lesser extent, broader sustainability issues. The HKMA also hopes that this white paper can enable AIs to have a grasp of the issue and help shape a greener, better, and more climate-resilient banking system.
