In this update, KPMG provides additional analysis on the regulatory requirements for fund managers as outlined in the Hong Kong Securities and Futures Commission’s (“SFC”) Consultation on Management and Disclosure of Climate-related Risks, including:
- Governance – Board of Directors
- Governance – Management
- Investment Management
- Portfolio Risk, Management and Operations
- Investor Reporting and Disclosures
In 2021, the SFC issued the Consultation Conclusions on the Management and Disclosure of Climate-related Risks by Fund Managers. The resulting conclusion set out by the SFC is to implement the recommendations using a two-tiered approach; a baseline set of requirements which will apply to all fund managers managing collective investment schemes; and a set of “enhanced requirements” that will apply to fund managers with assets under management (AUM) that are equal to or in excess of HK$ 8 billion (excluding the AUM of discretionary accounts). With the asset management industry under pressure to manage its climate risk exposure, the consultation conclusion is a sign of convergence between institutional investor demands and the regulatory agenda.
From impact assessment, development and review of climate-related governance structures and risk management frameworks to quantitative analysis and reporting, KPMG helps our clients to navigate the complexity of implementing climate-related considerations and climate risk management across the organisation.
