HKEX launches voluntary Green Equity label with 50% revenue test

HKEX announced on Oct. 21 the launch of HKEX Green Equity, a voluntary designation for companies whose revenue and investment are mostly green. Independent reviewers assess applicants against the HKEX Green Equity Framework. The framework evaluates how far a company's activities contribute to the green economy, drawing on relevant taxonomies and the WFE Green Equity Principles, the exchange group said.

Eligibility requires at least 50% of annual revenues from green activities and 50% of total annual investments allocated to green activities. Fossil fuel activities must account for less than 5% of revenues and investment. Applicants must comply with applicable environmental, social, labour, employment and health and safety laws, have processes in place to consider the environmental sustainability of operations, and show board-level oversight of sustainability strategy and implementation.

Companies that meet the framework are awarded the designation and the right to use its mark, subject to continued compliance and annual reassessment. Paul Chow, HKEX Group General Counsel and Group Chief Sustainability Officer, said the framework and independent assessment process "will help strengthen visibility for qualifying companies, support informed investment decisions." Hong Kong's sustainable finance build-out this year included a $2.6 billion tokenized green bond priced with tokenized deposit settlement.