As an increasing number of investors and corporations are paying more attention to environmental, social, and governance (ESG) disclosure, many regulators around the world are actively promoting ESG development. At the same time, ESG investment has become a prominent tool across major markets in response to the challenges of climate change.

As a global financial centre, Hong Kong has the potential for channelling global capital into ESG assets, leveraging finance to catalyse sustainable development. This report starts with an in-depth discussion on ESG reporting, investment and value creation within the ESG ecosystem, followed by a review of regulatory regimes across the global landscape and the latest developments in reporting and investment. The report proposes a set of policy recommendations that we believe would let Hong Kong continue to spearhead the development of global capital markets.