Report on "Climate Risk Measurement: The Existing Landscape and Developments in Hong Kong's Financial Services Industry"

The following is issued on behalf of the Hong Kong Monetary Authority:
     The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance (AoF), today (December 19) released a new applied research report, titled "Climate Risk Measurement: The Existing Landscape and Developments in Hong Kong's Financial Services Industry".
     This report reviews global financial institutions' motivations and challenges associated with climate risk measurement, and presents the results of a survey and interviews commissioned by the HKIMR, highlighting the existing landscape and developments on this subject in Hong Kong's financial services industry. Financial institutions in Hong Kong are involved in the measurement of climate risk, with more than half of the survey respondents currently engaging in it and 76 per cent having planned to allocate similar or more resources over the next 12 months. Although some challenges remain, the established experience of insurers in measuring climate risk can provide useful insights for other sectors. The report concludes by offering some considerations that can contribute to the discussion on how to facilitate and enhance climate risk measurement in Hong Kong.
     "By illustrating the industry's practices and developments in climate risk measurement, we hope that this report can provide financial institutions and regulators with useful insights that will help them advance efforts in climate risk measurement. This, in turn, will further consolidate and strengthen Hong Kong's position as a green and sustainable finance hub both regionally and internationally," said Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA) and Deputy Chairman of the HKIMR, Mr Darryl Chan.
     The report is available on the AoF/HKIMR website.

About the AoF

     The AoF is set up with full collaboration amongst the HKMA, the Securities and Futures Commission, the Insurance Authority and the Mandatory Provident Fund Schemes Authority. By bringing together the strengths of the industry, the regulatory community, professional bodies and the academia, it aims to serve as (i) a centre of excellence for developing financial leadership; and (ii) a repository of knowledge in monetary and financial research, including applied research.
About the HKIMR

     The HKIMR is the research arm of the AoF. Its main remit is to conduct research in the fields of monetary policy, banking and finance that are of strategic importance to Hong Kong and the Asia region. The Applied Research studies undertaken by the HKIMR are on topics that are highly relevant to the financial industry and regulators in Hong Kong, and they aim to provide insights on the long-term development strategy and direction of Hong Kong's financial industry.

Ends/Monday, December 19, 2022
Issued at HKT 16:00