Hong Kong Advances Sustainability Disclosure at UN Meeting in Geneva, Aiming for ISSB Standards Alignment.

SFST continues visit to Switzerland

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, continued his visit to Switzerland. He attended the 41st session of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) organised by the United Nations Conference on Trade and Development (UNCTAD) in Geneva on November 6 (Geneva time) to elaborate on Hong Kong's efforts in building a comprehensive ecosystem for sustainability disclosure through getting the right policy steer with commitment, the right pull factors with incentives and the right people with expertise.

On the topic of the session "Sustainability reporting frameworks and standards: from interoperability to full harmonization", Mr Hui said it is timely and highly significant because Hong Kong, as a premier finance hub channelling international capital to sustainable purposes, fully acknowledges the importance of sustainability disclosure. He added that Hong Kong's aim is to be among the first jurisdictions to align the local sustainability disclosure requirements with the International Financial Reporting Standards - Sustainability Disclosure Standards (ISSB Standards).

"Our commitment to aligning our sustainability reporting standards with the ISSB Standards is clear.

"The Hong Kong Special Administrative Region (SAR) Government has been working with financial regulators and stakeholders to develop a roadmap on the full adoption of the ISSB Standards in Hong Kong," Mr Hui said.

Mr Hui noted that the roadmap will be launched this year to provide a transparent and well-defined pathway on sustainability reporting for businesses in Hong Kong, as well as sufficient time for making preparations.

"The roadmap will also comprise three other key areas, namely sustainability assurance, data and technology, and capacity building," Mr Hui said.

Local sustainability-related assurance and ethics standards will be developed to enable credible implementation of sustainability disclosure in Hong Kong. Supporting capacity building efforts locally, regionally and internationally through providing training programmes, publishing sustainability-related training materials, etc, could help nurture trained sustainable finance professionals.

In addition, promoting the use of technology-driven solutions could facilitate better sustainability disclosures and enhance the quality of data. Mr Hui particularly noted that the Hong Kong SAR Government issued last week the Policy Statement on Responsible Application of Artificial Intelligence in Financial Market, with a view to facilitating and enabling responsible AI (artificial intelligence) adoption in the financial services industry at large, among firms of all sizes.

On the sidelines of the ISAR session, Mr Hui met with the Vice-Chair of the International Sustainability Standards Board, Ms Sue Lloyd. They exchanged views on how to develop sustainability reporting standards for cross-sectoral observance, including listed companies and regulated financial institutions.

On November 6, Mr Hui also met with the Deputy Director-General of the World Trade Organization, Mr Jean-Marie Paugam. They discussed, among others, issues about enhancement of quality assessment of government tenders by promoting environmental, social and governance (ESG) in tender exercises, and the fight against climate change by means of facilitating green and sustainable finance. He also met with the Director of the Geneva Financial Center (GFC), Mr Edouard Cuendet. The GFC is the umbrella association for the financial sector in Geneva. Both sides explored collaboration opportunities during the meeting.

Mr Hui also paid a courtesy call on Minister-Counsellor of the Permanent Mission of the People's Republic of China to the United Nations Office at Geneva and other international organizations in Switzerland Ms Liang Hong, to update her on the latest situation of Hong Kong.

On November 5 in Zurich, Mr Hui met with the Deputy Chief Executive Officer, Head of Private Banking and Asset Management of the Swiss Bankers Association, Mr August Benz, to discuss topics of mutual concern, including ways to tap into the immense opportunities from family office business, as well as the importance of maintaining stable financial centres amid uncertain times.

Mr Hui had a meeting with the Founder and Chairman of the Board of Trustees of the World Economic Forum, Professor Klaus Schwab, in Geneva. Professor Schwab expressed strong interest in the resilience and sustainability of Hong Kong's financial market. Mr Hui briefed Professor Schwab that Hong Kong is driving the high quality development in financial services to enhance the city's competitiveness in the international arena.

At the meeting in Geneva with the UNCTAD led by their Director of the Division on Investment and Enterprise, Ms Nan Li Collins, Mr Hui shared insights on the escalating standards for ESG and the increasing awareness around sustainable investment among Hong Kong's enterprises.

On the same day, Mr Hui had a dinner gathering with the Romandie Chapter of the Swiss-Chinese Chamber of Commerce (SCCC). During the dinner, Mr Hui updated SCCC's members from wealth and asset management, risk management and legal sectors on Hong Kong's financial services landscape and its strategic outlook as a vital gateway to Mainland China, especially the Guangdong-Hong Kong-Macao Greater Bay Area.

On November 7 (Bern time), Mr Hui will meet with Swiss financial officials and top management of the International Institute for Management Development.

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

SFST continues visit to Switzerland Source: HKSAR Government Press Releases

Speech by FS at Insurance Summit 2024 (with video)

Following is the video speech by the Financial Secretary, Mr Paul Chan, at the Insurance Summit 2024 today (November 7):

Allan (Mr Allan Yu, Chairman of the Insurance Training Board, the Vocational Training Council), ladies and gentlemen,

Good morning. Welcome to the Insurance Summit 2024. Let me first extend my heartfelt thanks to the Vocational Training Council's Insurance Training Board and PEAK, the Institute of Professional Education and Knowledge, for organising this year's eighth edition of the Summit. I'm pleased to have the opportunity to speak with you about insurance, a long-standing pillar of the Hong Kong economy and community.

Hong Kong as an insurance hub

Hong Kong is an international financial centre. Our strategic location, advanced infrastructure, and concentration of global financial institutions and talent offer the perfect environment for the insurance industry to prosper.

Indeed, Hong Kong is a major insurance hub, boasting the highest concentration of insurance companies and insurance density in Asia. We also have the world's highest insurance penetration rate. The industry employs some 130 000 professionals. All these figures highlight the deep integration of insurance in our economy and society.

Hong Kong's insurance sector is growing steadily following the pandemic. In the first half of 2024, gross premiums in Hong Kong rose by over 5 per cent, exceeding $310 billion.

The future of our insurance industry looks promising, especially with the growing affluence of the Greater Bay Area (GBA) and the increasing demand for high-quality insurance and investment products. As such, we are supporting the industry to better capture these cross-boundary business opportunities, including the establishment of after-sales service centres in Nansha and Qianhai, to facilitate policy management and service for policy holders living in the GBA.

A global risk management centre

Looking ahead, it is our vision to strengthen Hong Kong as a global risk management centre. I'm delighted to share a number of initiatives we have been pursuing actively over the past few years.

First, providing innovative tools to manage the risks associated with climate change. As natural hazards increasingly impact various parts of the world, there is a growing need for insurance products that offer protection against such disasters. Since 2021, we have introduced catastrophe bonds, which are insurance-linked securities designed to share natural disaster risks with investors, while providing them with attractive returns. To date, five catastrophe bonds have been issued in Hong Kong, covering events from earthquakes to storms, with a total value exceeding US$700 million. Two of these bonds are listed on the Hong Kong Stock Exchange.

Second, driving fintech innovation in insurance. Fintech is transforming the industry. New practices such as virtual onboarding and digital distribution models have streamlined operations, enhanced customer experiences, and lowered costs. This transformation will ultimately make insurance services more accessible to the public and more comprehensive in covering areas left out by traditional insurers.

In fact, our Insurance Authority adopts a pro-innovation approach. For example, back in 2017, they initiated the Insurtech Sandbox, allowing companies to test innovative technologies and receive regulatory feedback before launching their solutions in the market.

So far, Hong Kong has four licensed digital insurance companies. Some of them are making their mark on the global stage as well. The founder of one of those companies recently joined my delegation to Saudi Arabia, where they signed two deals, attracting interest and investments from Middle Eastern partners.

Ladies and gentlemen, in the Chief Executive's recent Policy Address, more measures have been introduced to advance the development of the insurance sector. They include improvements to our risk-based capital regime, which will enrich insurance companies' choice of asset allocation for better risk diversification, including investment in infrastructure; and continuing to encourage large companies, including state-owned enterprises from the Mainland, to establish their captive insurers in Hong Kong.

Insurance talent

For our efforts to succeed, talent is essential. Our programme to enhance talent training for the insurance sector has provided over 580 internship positions and 15 000 training-course opportunities since 2016. I am pleased to note that the Vocational Training Council has been our valuable partner in ensuring a continuous flow of talent in the insurance sector. For that, I am grateful.

All in all, I am confident that we have what we need to rise high as a leading global risk management centre - long down the rapidly changing world and the boundless opportunities it presents.

I wish you all a rewarding Summit and the best of business and health in the years ahead. Thank you very much.