SFC’s Consultation on Management and Disclosure of Climate-related Risks

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:

1. Governance – Board of Directors
2. Governance – Management
3. Investment Management
4. Portfolio Risk, Management and Operations
5. 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.

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

Angus Choi
Partner, Advisory
Climate and Sustainability
KPMG China

Jeffrey Hau
Partner, Advisory
Risk Consulting
KPMG China

Matthew Sung
Partner, Asset Management
KPMG China

Gemini Yang
Partner, Advisory
KPMG China