New SFC Requirements for Management and Disclosure of Climate-related Risks: First Deadline for Compliance is on 20 August 2022

The transition periods for fund managers to implement the regulatory requirements for the management and disclosure of climate-related risks will soon come to an end, with the first deadline for compliance being later this month. 

“Large Fund Managers” (i.e. those with an AUM ≥ HK$8 billion) are reminded that they will need to comply with the baseline requirements by 20 August 2022.

While Large Fund Managers and other fund managers have until 20 November 2022 to comply with the enhanced standards and baseline requirements, respectively, we would urge all fund managers to start thinking about how they intend to meet these new regulatory requirements sooner rather than later, if they haven’t already done so. 

We are working with our clients to carry out gap analysis in relation to their policies and procedures, imbedding the analysis of climate-related risks into their risk management and investment processes and also ensuring that proper disclosures are made to their investors.