Exchange group Hong Kong Exchanges and Clearing Limited (HKEX) announced the launch of HKEX Green Equity, a new voluntary designation program designed to help investors identify companies with a substantial commitment to environmentally sustainable business activities and investment, and enable companies to demonstrate their contribution to the green economy.
Under the program, eligible companies will be assessed by independent reviewers, based on the HKEX Green Equity Framework, which evaluates the extent to which a company’s activities contribute to the green economy, drawing on relevant taxonomies and the WFE Green Equity Principles, and aligned with global sustainability priorities.
Criteria for the green equity designation include at least 50% of annual revenues from green activities, 50% of total annual investments allocated to green activities, and less than 5% of revenues and investment from fossil fuel activities. Companies must also comply with applicable environmental, social, labor, employment and health and safety laws, have processes in place to consider the environmental sustainability of operations, and have appropriate board-level oversight the sustainability strategy and implementation.
Companies meeting the framework’s requirements will be awarded the HKEX Green Equity designation and will be entitled to use the designation mark, subject to ongoing compliance and annual reassessments.
According to HKEX, the new designation comes as investor demand for sustainable investment opportunities continues to grow, creating a greater need for credible and transparent ways to identify companies contributing to the green economy. HKEX said that the new program aims to increase the visibility of qualifying green businesses and support informed investment decisions through a transparent framework and independent assessment process.
Paul Chow, HKEX Group General Counsel and Group Chief Sustainability Officer, said:
“Through a transparent framework and independent assessment process, HKEX Green Equity will help strengthen visibility for qualifying companies, support informed investment decisions and further reinforce Hong Kong’s position as a leading international sustainable finance hub.”
