HKEX Launches Green Equity Designation to Identify Sustainable Companies in Hong Kong

Hong Kong Exchanges and Clearing Limited (HKEX) has launched HKEX Green Equity, a voluntary designation programme designed to help investors identify listed companies with substantial environmentally sustainable business activities. Announced on 20 October 2026, the initiative introduces a standardised framework and independent assessment process to improve transparency around green investments and support capital flows towards companies contributing to the low-carbon transition. The programme also aims to strengthen Hong Kong's position as an international sustainable finance hub.

 

Under the HKEX Green Equity Framework, eligible companies must demonstrate that a significant proportion of their operations and investments contribute to environmentally sustainable activities. HKEX's published criteria require at least 50% of annual revenue and 50% of annual capital and operating expenditure to be associated with green activities, while fossil fuel activities must account for less than 5% of each measure. Companies will undergo assessments by independent Recognised Reviewers, which evaluate their alignment with the framework. Successful applicants will receive the HKEX Green Equity designation and may use its official mark, subject to continuing compliance and annual reassessment.

 

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Paul Chow, Group General Counsel and Group Chief Sustainability Officer at HKEX, highlighted the importance of credible sustainability classifications for investors. "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," he said. The initiative is intended to provide investors with greater confidence when assessing companies' environmental credentials while giving eligible businesses a recognised way to demonstrate their contribution to the green economy.

 

The programme complements HKEX's broader sustainable finance initiatives, including climate-related disclosures, the Core Climate marketplace for carbon credits and Green Electricity Certificates, and the promotion of the Hong Kong Taxonomy for Sustainable Finance. By providing an independently assessed designation, HKEX aims to improve the visibility of green businesses in capital markets and encourage greater alignment with internationally recognised sustainability frameworks. The designation is voluntary and operates separately from existing listing and ESG disclosure obligations.

 

Applications opened on 20 October 2026, with HKEX publishing its framework, eligibility requirements and a list of approved independent reviewers. Companies seeking the designation must demonstrate continued compliance through annual assessments. The initiative could support more consistent identification of green businesses, although its effectiveness will depend on company participation, the quality of independent reviews and how investors use the designation in their investment decisions.

 

Source: Hong Kong Exchanges and Clearing Limited (HKEX)