Hong Kong’s Mandatory Provident Fund Schemes Authority (MPFA) is implementing stricter ESG disclosure rules for 12 major pension fund managers, including HSBC and Manulife. These firms must enhance transparency in ESG investment strategies and risk management by September 30.

Key Changes

Fund managers must:

Clearly define ESG strategies in investment brochures
Monitor and report ESG factors in fund performance
Disclose ESG achievements in annual governance reports

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Why It Matters

The new requirements affect 47 ESG-related funds managing assets worth HK$36.6 billion (US$4.71 billion). ESG-themed funds must also comply with the rules.

“This approach enables scheme members to evaluate whether the funds’ ESG performance aligns with their expectations,” said Cheng Yan-chee, MPFA Managing Director.

Bigger Picture

Hong Kong is strengthening its green finance framework, with major listed firms required to disclose supply chain emissions by 2026.
The MPFA will launch the next phase of its eMPF Platform on March 5, transitioning towards a fully digital, paperless system to reduce costs and environmental impact.

“Our long-term goal is to create a greener operating environment, ultimately going 100 percent digital,” said Ayesha Macpherson Lau, MPFA Chairwoman.

Bottom Line

These ESG disclosure enhancements and the shift to digital governance reinforce Hong Kong’s commitment to sustainable finance.

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