Hong Kong’s Mandatory Provident Fund Schemes Authority (MPFA) is enforcing stricter ESG disclosure requirements on 12 major pension fund managers. This move aims to boost transparency in risk management and investment strategies. The new regulations require fund managers to clearly outline ESG strategies and risk management processes in brochures. They must also measure and monitor ESG factors in their funds.
The update impacts 47 ESG-related funds, managing assets worth HK$36.6 billion. New ESG-themed funds must also comply with the rules. The MPFA’s move aligns with broader initiatives to green Hong Kong’s capital markets. By enhancing ESG disclosures and digitally transforming the MPF scheme, Hong Kong is taking significant steps towards aligning financial practices with global sustainability standards .
