As the investment manager of the Exchange Fund and a major global asset owner, the HKMA proactively supports responsible investment (RI).
The HKMA sees RI as an investment approach that takes into account the impact of various environmental, social and governance (ESG) factors on the long-term investment returns and their sustainability.
We believe that, by putting an appropriate emphasis on RI and sustainable long-term performance, we can better achieve the investment objectives of the Exchange Fund, and reduce risks associated with ESG-related matters of our underlying investments.
a Focusing Capital on the Long Term (FCLTGlobal)
b Principles for Responsible Investment (PRI)
c Network of Central Banks and Supervisors for Greening the Financial System (NGFS)
d Task Force on Climate-related Financial Disclosures (TCFD)
Our RI journey commenced with the adoption of the Principles of Responsible Ownership promulgated by the Securities and Futures Commission in 2016 and was accelerated by integrating ESG factors into our investment processes from 2017.
In 2019, we established the overarching guiding principle to prioritise ESG investments with comparable long-term risk-adjusted returns, reinforcing an approach for RI that dovetailed with the investment objectives of the Exchange Fund.
Further demonstrating our commitment to RI and a climate-resilient economy, we joined the PRI as one of its earliest central bank signatories, and became a member of the NGFS and a supporter of the TCFD.
Recently in 2022, we set a target of net-zero emissions by 2050 for the Investment Portfolio of the Exchange Fund. Moving forward, we will continue to step up RI efforts in achieving the target.