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Green Finance Certification Scheme  |  Green Finance Certification Scheme - Green Fund  |  HKSAR Government’s Green Bond Grant Scheme  

Green Finance Certification Scheme - Green Fund

Respond to Stakeholders’ Needs and Raise Awareness of

Green Initiatives in the Fund Market

Although different investment industry stakeholders have been responding to the rising global demand to incorporate green or environmental, social and governance (ESG) objectives into financial products so that capital would be directed to projects or companies that bring positive impact, there are still issues related to consistency, transparency and sufficiency of disclosure. Environmentally sensitive investors are expecting a higher disclosure standard for the green-related performance of financial products so that they can make informed investment decisions. SFC also published guidance on enhanced disclosure for green or ESG funds on 11 April 2019.

As the Green Fund market is expected to grow, HKQAA developed the Green Finance Certification Scheme - Green Fund to respond to stakeholders’ needs and raise awareness of green initiatives in the fund market. HKQAA will also continue to support SFC’s Strategic Framework for Green Finance. The Scheme aims to encourage more investors from the fund market to support green projects and industries as well as organisations committed to making a contribution to the United Nations’ Sustainable Development Goals (SDGs).

Core Elements and Requirements of Certification

The Scheme extends from covering green bonds and green loans to green funds. In the development process, HKQAA is drawing reference from a number of widely-acknowledged and important documents.

The Scheme will apply the core methodologies of a measurable qualitative approach and adopt SDGs for assessing positive environmental impact. The core elements of the Scheme include Fund Objectives, Management of Fund, Green Asset Evaluation and Selection, Green Asset Monitoring, Information Disclosure and Reporting, and Engagement & Active Ownership.

The Scheme is designed to enhance the transparency of the green investment process by making clear to investors how the fund’s green assets are evaluated, selected and managed. Improving and aligning green disclosure standards across funds through marketing and educational efforts will support a more informed investment decision-making process, allowing investors to choose funds whose values align with theirs.

Types of Certification

The Scheme will issue two types of Certificates: Green Finance Pre-issuance Stage Certificate and Green Finance Post-issuance Stage Certificate. Management Company shall apply for different Certificates according to its fund status.

 
 Pre-issuance stage certification
 Post-issuance stage certification
 Target
 New Fund or Existing Fund
 Existing Fund
 Validity
 As-at certificate (No expiry date)
 Three year
 Maintenance
 Not necessary
 Annual assessment
 Objective
Validate the adequacy of the Environmental Method Statement
(Note: Requirements related to implementation are not   applicable to this certification)
Validate the adequacy and verify the effectiveness of  Environmental Method Statement
 Assessment
Assessment will focus on the requirements related to establishing and documenting objective, mechanism
(including strategies, methodology, criteria if applicable), process and competence. Implementation record is not   required for this stage.
Assessment will go beyond those covered in pre-issuance stage  certification. Implementation record of mechanism, process,  practice and demonstration on its objective and portfolio is also  required for assessment.

 

 

Please click HERE for more information.
 

 

 

The Handbook and Terms and Conditions of the Green Finance Certification Scheme

Apply Enquiry Request Quotation Terms & Condition

 

Last Update: 2019-12-16   Disclaimer and Copyright
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