As the investment manager of the Exchange Fund, we believe that the concept of responsible investment (RI) is highly relevant to our investment work.
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.
1 Focusing Capital on the Long Term (FCLTGlobal)
2 Principles for Responsible Investment (PRI)
3 Central Banks and Supervisors Network for Greening the Financial System (NGFS)
4 Task Force on Climate-related Financial Disclosures (TCFD)
The Exchange Fund Advisory Committee endorses the guiding principle and overall framework for RI of the Exchange Fund.
Our guiding principle is that priority will generally be given to ESG investments if the long-term risk-adjusted return is comparable to other investments.
We adopt as appropriate the following three-pronged approach in our investment processes that underpins our beliefs as a responsible long-term investor: