Policies and guidelines on green banking and investment on fossil fuel industry

Simon Wang根據公開資料要求香港金融管理局披露資料

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Dear Hong Kong Monetary Authority,

As a teacher at Baptist University, I am working with a group of students investigating how banks in Hong Kong should be held accountable for their investment/loan on/to fossil fuel industry. As the Authority adopts a three-phased approach to promote green and sustainable banking (https://www.hkma.gov.hk/eng/key-function...), I have the following questions for the Authority to answer under the Code on Access to Information:

1. Referring to Phase I of the approach, what technical support does the Authority provide to banks in HK to understand the climate changes risks related to their loans/investment on companies from fossil fuel industry?

2. With respect to the Responsible Investment measures on sustainable banking and green finance https://www.hkma.gov.hk/eng/news-and-med... please let me know what measures are relevant to investment/loan decisions on fossil fuel industry.

3. Referring to Phase II of the approach what issues related to investment/loan decisions on fossil fuel industry has the consultation on the supervisory expectation or requirement on Green and Sustainable Banking addressed? Any tangible deliverables for promoting the green and sustainable developments of the Hong Kong banking industry in connection to investment/loan decisions on fossil fuel industry?

4. What policies/guidelines does the Authority have regarding banks' investment/loan decisions on fossil fuel industry?

As we're still researching on this topic, please also kindly refer us to any documents or papers related to the issues we raised. We'll write to HKMA again if we have further questions. Thanks in advance.

Yours faithfully,

Simon Wang

When you reply to this request, please kindly include the following email in the loop

simonwang (at) hkbu.edu.hk
s1-gcap3056 (at) maillist.hkbu.edu.hk

香港金融管理局

The Hong Kong Monetary Authority acknowledges receipt of your email and
will handle as soon as possible.
To ensure service quality, all our telephone conversations may be recorded,
irrespective of whether you dial in or we call you back. We will not
disclose personal information about you to anyone outside the Hong Kong
Monetary Authority unless required or permitted to do so by law.

本局已收到你的電郵並會盡快處理。
為確保我們的服務質素,所有你跟本局職員之間的電話談話內容,無論是你的來電或
是我們的回覆電話,都可能會被錄音。除非是法律允許,否則我們不會向外界透露你
的個人資料。

香港金融管理局

Dear Mr. Wang,

Thank you for your email dated 5 October 2021.  Please note that your
enquiry is being handled.  According to paragraph 1.16 of the "Code on
Access to Information", we will inform you the progress on or before 25
October 2021.

Best regards,

Florence Lui
Access to Information Officer
Hong Kong Monetary Authority

----------------------------------------- Reply History
-----------------------------------------

To: "FOI requests at Hong Kong Monetary Authority"
<[Hong Kong Monetary Authority request email]>
Cc:
Bcc:
Tips
From: "Simon Wang"    
<[FOI #831 email]>
05/10/2021 08:44 PM  
Subject Freedom of Information request - Policies and guidelines on green
banking and investment on fossil fuel industry

Dear Hong Kong Monetary Authority,

As a teacher at Baptist University, I am working with a group of students
investigating how banks in Hong Kong should be held accountable for their
investment/loan on/to fossil fuel industry. As the Authority adopts a
three-phased approach to promote green and sustainable banking
([1]https://www.hkma.gov.hk/eng/key-function...),
I have the following questions for the Authority to answer under the Code
on Access to Information:

1. Referring to Phase I of the approach, what technical support does the
Authority provide to banks in HK to understand the climate changes risks
related to their loans/investment on companies from fossil fuel industry?

2. With respect to the Responsible Investment measures on sustainable
banking and green finance
[2]https://www.hkma.gov.hk/eng/news-and-med...
please let me know what measures are relevant to investment/loan decisions
on fossil fuel industry.  

3. Referring to Phase II of the approach what issues related to
investment/loan decisions on fossil fuel industry has the consultation on
the supervisory expectation or requirement on Green and Sustainable
Banking addressed? Any tangible deliverables for promoting the green and
sustainable developments of the Hong Kong banking industry in connection
to investment/loan decisions on fossil fuel industry?

4. What policies/guidelines does the Authority have regarding banks'
investment/loan decisions on fossil fuel industry?  

As we're still researching on this topic, please also kindly refer us to
any documents or papers related to the issues we raised. We'll write to
HKMA again if we have further questions. Thanks in advance.

Yours faithfully,

Simon Wang

When you reply to this request, please kindly include the following email
in the loop

simonwang (at) hkbu.edu.hk
s1-gcap3056 (at) maillist.hkbu.edu.hk

-------------------------------------------------------------------

This is a request under the Code of Access to Information facilitated via
the accessinfo.hk website.

Please use this email address for all replies to this request:
[FOI #831 email]

Is [Hong Kong Monetary Authority request email] the wrong address for Freedom of Information requests
to Hong Kong Monetary Authority? If so, please contact us using this form:
[3]https://accessinfo.hk/en/change_request/...

Disclaimer: This message and any reply that you make will be published on
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References

Visible links
1. https://www.hkma.gov.hk/eng/key-function...
2. https://www.hkma.gov.hk/eng/news-and-med...
3. https://accessinfo.hk/en/change_request/...
4. https://accessinfo.hk/en/help/officers

香港金融管理局

Dear Mr. Wang,

I refer to your email dated 5 October 2021 requesting the Hong Kong
Monetary Authority (the “HKMA”) to provide information and our interim
reply to you below dated 12 October 2021.

Please be informed that we are coordinating among departments within the
HKMA and searching extensively for the requested information. We will
revert to you within 51 days from the receipt of your request (i.e. on or
before 24 November 2021) in accordance with paragraph 1.18 of the Code on
Access to Information.  Thank you for your understanding.

Best regards,

Florence Lui
Access to Information Officer
Hong Kong Monetary Authority

 To:  "Simon Wang" ----------------------------------------- ----
<[FOI #831 email]> ----
 cc:  [email address] ----------------------------------------- ----
[email address] ----------------------------------------- ----
----
----
 bcc:  
 Tips
 From:  Public Enquiry ----------------------------------------- ----
----
 Date:  12/10/2021 12:15 PM  
 Subject:  Re: Freedom of Information request - Policies and guidelines on green banking and
investment on fossil fuel industry   [1]Link

Dear Mr. Wang,

Thank you for your email dated 5 October 2021.  Please note that your
enquiry is being handled.  According to paragraph 1.16 of the "Code on
Access to Information", we will inform you the progress on or before 25
October 2021.

Best regards,

Florence Lui
Access to Information Officer
Hong Kong Monetary Authority

----------------------------------------- Reply History
-----------------------------------------

To: "FOI requests at Hong Kong Monetary Authority"
<[email address]>
Cc:
Bcc:
Tips
From: "Simon Wang"    
<[FOI #831 email]>
05/10/2021 08:44 PM  
Subject Freedom of Information request - Policies and guidelines on green
banking and investment on fossil fuel industry

Dear Hong Kong Monetary Authority,

As a teacher at Baptist University, I am working with a group of students
investigating how banks in Hong Kong should be held accountable for their
investment/loan on/to fossil fuel industry. As the Authority adopts a
three-phased approach to promote green and sustainable banking
([2]https://www.hkma.gov.hk/eng/key-function...),
I have the following questions for the Authority to answer under the Code
on Access to Information:

1. Referring to Phase I of the approach, what technical support does the
Authority provide to banks in HK to understand the climate changes risks
related to their loans/investment on companies from fossil fuel industry?

2. With respect to the Responsible Investment measures on sustainable
banking and green finance
[3]https://www.hkma.gov.hk/eng/news-and-med...
please let me know what measures are relevant to investment/loan decisions
on fossil fuel industry.  

3. Referring to Phase II of the approach what issues related to
investment/loan decisions on fossil fuel industry has the consultation on
the supervisory expectation or requirement on Green and Sustainable
Banking addressed? Any tangible deliverables for promoting the green and
sustainable developments of the Hong Kong banking industry in connection
to investment/loan decisions on fossil fuel industry?

4. What policies/guidelines does the Authority have regarding banks'
investment/loan decisions on fossil fuel industry?  

As we're still researching on this topic, please also kindly refer us to
any documents or papers related to the issues we raised. We'll write to
HKMA again if we have further questions. Thanks in advance.

Yours faithfully,

Simon Wang

When you reply to this request, please kindly include the following email
in the loop

simonwang (at) hkbu.edu.hk
s1-gcap3056 (at) maillist.hkbu.edu.hk

-------------------------------------------------------------------

This is a request under the Code of Access to Information facilitated via
the accessinfo.hk website.

Please use this email address for all replies to this request:
[FOI #831 email]

Is [email address] the wrong address for Freedom of Information requests
to Hong Kong Monetary Authority? If so, please contact us using this form:
[4]https://accessinfo.hk/en/change_request/...

Disclaimer: This message and any reply that you make will be published on
the internet. Our privacy and copyright policies:
[5]https://accessinfo.hk/en/help/officers

If you find this service useful as an FOI officer, please ask your web
manager to link to us from your organisation's FOI page.

顯示引用部分

香港金融管理局

Dear Mr. Wang,

Thank you for your email. Please find below our responses in blue:

Q1. Referring to Phase I of the approach, what technical support does the
Authority provide to banks in HK to understand the climate changes risks
related to their loans/investment on companies from fossil fuel industry?

Answer: To provide technical support to banks in Hong Kong to better
understand principles related to green and sustainable banking, the Hong
Kong Monetary Authority (HKMA) collaborated with international bodies
(e.g. International Finance Corporation (IFC), a member of the World Bank
Group) to organize seminar and capacity building events. You may refer to
press release "IFC and HKMA Showcase Best Practices in Sustainable
Business and Climate Finance at the IFC Climate Business Webinar"
([1]Link) for more details about our past event.  

Separately, to provide ongoing technical support and capacity building to
banks, we have been working with IFC under the Alliance for Green
Commercial Banks ([2]Link) to organize regular trainings.  For examples of
recent trainings, please see the press releases "The Alliance for Green
Commercial Banks Organized the First Roundtable in Green Finance"
([3]Link) and "The Alliance for Green Commercial Banks Organises the 2nd
CEO Roundtable in Green Building" ([4]Link).

Q2. With respect to the Responsible Investment measures on sustainable
banking and green finance
[5]https://www.hkma.gov.hk/eng/news-and-med...
please let me know what measures are relevant to investment/loan decisions
on fossil fuel industry.  

Answer: The "Responsible Investment" measures in the quoted webpage is
related to HKMA's management of the Exchange Fund, rather than our
measures on green and sustainable banking.  As you may note from the
webpage (which is our press release on 7 May 2019), the HKMA announced
three sets of measures "to promote sustainable banking and green finance"
- namely Green and Sustainable Banking, Responsible Investment, and the
Centre for Green Finance.  On Green and Sustainable Banking, please refer
to Q3 / Q4 below regarding our response to your enquiry about banks'
investment/loan decisions on fossil fuel industry.

Q3. Referring to Phase II of the approach what issues related to
investment/loan decisions on fossil fuel industry has the consultation on
the supervisory expectation or requirement on Green and Sustainable
Banking addressed? Any tangible deliverables for promoting the green and
sustainable developments of the Hong Kong banking industry in connection
to investment/loan decisions on fossil fuel industry?

Q4. What policies/guidelines does the Authority have regarding banks'
investment/loan decisions on fossil fuel industry?

Answer for Q3 and Q4: In June 2020, the HKMA published a White Paper on
Green and Sustainable Banking ([6]Link), which provided some background on
climate and environmental issues, and discussed our initial thinking about
the supervisory approach to addressing climate-related issues.
Specifically, the White Paper gave an overview on sectors sensitive to
climate-related risks (see P.14) and outlined some guiding principles for
banks to build climate resilience (see Section IV).  In June 2020, we also
issued a circular ([7]Link, [8]Annex) which outlined the range of
practices that the more advanced banks have adopted or planned to adopt in
managing climate risks, aiming to inspire banks on developing their
approach to the management of climate risks

In July 2021, the HKMA consulted the banking industry on the draft
Supervisory Policy Manual (SPM) on climate risk management ([9]Link),
which provided guidance and examples on how banks should identify,
measure, monitor, report, control and mitigate climate risks, covering
credit and investment decision process.  For instance, in conducting
portfolio assessment, banks are suggested to identify the high risk asset
portfolios based on sectoral/geographical exposures.  While we have not
specified high-risk sectors in the SPM, banks are suggested to make
reference to TCFD documents and internationally-recognised standards and
certification schemes, followed by more detailed analysis of client or
transactional data.  You may refer to section 5.2 of the draft SPM for
more details on climate risk identification and measurement, and section
5.4 for requirements related to control and mitigation. The consultation
was closed in August, we are reviewing the industry feedback.

Please also note that our draft SPM makes reference to a number of
documents issued by other international organisations/forums, e.g.
footnote 4.

Best regards,

Florence Lui
Access to Information Officer
Hong Kong Monetary Authority

To: "Simon Wang" ------------------------------------------------------------ ----
<[FOI #831 email]> ----
Cc: [email address] ------------------------------------------------------------ ----
[email address] ------------------------------------------------------------ ----
----
----
Bcc:
Tips
From: Public Enquiry ------------------------------------------------------------  
 ----
----
25/10/2021 05:03 PM  
Subject Re: Freedom of Information request - Policies and guidelines on green banking and investment on fossil fuel
industry

Dear Mr. Wang,

I refer to your email dated 5 October 2021 requesting the Hong Kong
Monetary Authority (the “HKMA”) to provide information and our interim
reply to you below dated 12 October 2021.

Please be informed that we are coordinating among departments within the
HKMA and searching extensively for the requested information. We will
revert to you within 51 days from the receipt of your request (i.e. on or
before 24 November 2021) in accordance with paragraph 1.18 of the Code on
Access to Information.  Thank you for your understanding.

Best regards,

Florence Lui
Access to Information Officer
Hong Kong Monetary Authority

 To:  "Simon Wang" ----------------------------------------- ----
<[FOI #831 email]> ----
 cc:  [email address] ----------------------------------------- ----
[email address] ----------------------------------------- ----
----
----
 bcc:  
 Tips
 From:  Public Enquiry ----------------------------------------- ----
----
 Date:  12/10/2021 12:15 PM  
 Subject:  Re: Freedom of Information request - Policies and guidelines on green banking and
investment on fossil fuel industry   [10]Link

Dear Mr. Wang,

Thank you for your email dated 5 October 2021.  Please note that your
enquiry is being handled.  According to paragraph 1.16 of the "Code on
Access to Information", we will inform you the progress on or before 25
October 2021.

Best regards,

Florence Lui
Access to Information Officer
Hong Kong Monetary Authority

----------------------------------------- Reply History
-----------------------------------------

To: "FOI requests at Hong Kong Monetary Authority"
<[email address]>
Cc:
Bcc:
Tips
From: "Simon Wang"    
<[FOI #831 email]>
05/10/2021 08:44 PM  
Subject Freedom of Information request - Policies and guidelines on green
banking and investment on fossil fuel industry

Dear Hong Kong Monetary Authority,

As a teacher at Baptist University, I am working with a group of students
investigating how banks in Hong Kong should be held accountable for their
investment/loan on/to fossil fuel industry. As the Authority adopts a
three-phased approach to promote green and sustainable banking
([11]https://www.hkma.gov.hk/eng/key-function...),
I have the following questions for the Authority to answer under the Code
on Access to Information:

1. Referring to Phase I of the approach, what technical support does the
Authority provide to banks in HK to understand the climate changes risks
related to their loans/investment on companies from fossil fuel industry?

2. With respect to the Responsible Investment measures on sustainable
banking and green finance
[12]https://www.hkma.gov.hk/eng/news-and-med...
please let me know what measures are relevant to investment/loan decisions
on fossil fuel industry.  

3. Referring to Phase II of the approach what issues related to
investment/loan decisions on fossil fuel industry has the consultation on
the supervisory expectation or requirement on Green and Sustainable
Banking addressed? Any tangible deliverables for promoting the green and
sustainable developments of the Hong Kong banking industry in connection
to investment/loan decisions on fossil fuel industry?

4. What policies/guidelines does the Authority have regarding banks'
investment/loan decisions on fossil fuel industry?  

As we're still researching on this topic, please also kindly refer us to
any documents or papers related to the issues we raised. We'll write to
HKMA again if we have further questions. Thanks in advance.

Yours faithfully,

Simon Wang

When you reply to this request, please kindly include the following email
in the loop

simonwang (at) hkbu.edu.hk
s1-gcap3056 (at) maillist.hkbu.edu.hk

-------------------------------------------------------------------

This is a request under the Code of Access to Information facilitated via
the accessinfo.hk website.

Please use this email address for all replies to this request:
[FOI #831 email]

Is [email address] the wrong address for Freedom of Information requests
to Hong Kong Monetary Authority? If so, please contact us using this form:
[13]https://accessinfo.hk/en/change_request/...

Disclaimer: This message and any reply that you make will be published on
the internet. Our privacy and copyright policies:
[14]https://accessinfo.hk/en/help/officers

If you find this service useful as an FOI officer, please ask your web
manager to link to us from your organisation's FOI page.

顯示引用部分