In December 2021, The Hong Kong Monetary Authority issued the Supervisory Policy Manual on Climate Risk Management (“GS-1”), providing guidance to authorised institutions (“AIs”) on new regulatory requirements and expectations for HKMA’s supervision.

This brief outlines regulatory requirements as detailed in the GS-1 manual, and provides KPMG perspectives on how AIs can effectively manage climate-related risks, including:

  • Establishing effective risk governance and risk strategy
  • Principles for effective risk management
  • Recommendations for climate-related financial disclosures

KPMG can support AIs to meet new requirements, including embedding climate considerations throughout their strategy formulation processes, incorporating climate-related risks into their risk management frameworks, and stress testing to ensure effective management of inherent risk and the associated financial impact.

Pat Woo
Global Co-Chair, Sustainable Finance, KPMG IMPACT
Head of Environment, Social and Governance, Hong Kong
KPMG China

Tom Jenkins
Head of Financial Risk Management
KPMG China

Michael Monteforte
Partner, Financial Risk Management
KPMG China

Gemini Yang
Partner, Financial Risk Management
KPMG China

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