Climate Risk Management and Disclosure Support for Fund Managers

GreenCo’s Experience and Solution for Fund Managers

Effective from 20 Aug 2021, Fund Managers managing collective investment schemes (CIS) is now subject to baseline requirements and enhanced standards (depending on their business scope and scale). GreenCo, specializing in ESG policy advisory and risk management, provides practical assistance by scientific tools and comprehensive research.

  • Governance

  • Risk Management

  • Investment Management

  • Disclosure

GreenCo’s policy research advisory

GreenCo supports Fund Managers’ board in setting up policy, committees and working team for regular review of climate related risks. Our opinion will be formed by making reference to recommended practices by related organisations and standard board and SFC’s practical examples. We will also take into account the Fund Managers’ culture and practical expedients.

Tools and metrics

Fund Managers, especially Large Fund Managers, to the extent climate-related risks are assessed to be relevant and material to an investment strategy or a fund they manage, are also required to assess the relevance and utility of scenario analysis in evaluating the resilience of investment strategies to climate-related risks under different pathways, and take reasonable steps to apply appropriate and science-based tools and metrics to assess and quantify climate-related risks.

  • Carbon footprints management. We can assist in data collection, Scope 1 and Scope 2 GHG emissions calculation (including underlying assumptions and limitations)
  • Development and maintenance of appropriate tools and metrics to assess and quantify climate-related risks.

Implementation timeline

Following the issuance of the consultation conclusions, the regulatory requirements for climate-related risks will become effective after the following transition periods:

(i) a 12-month transition period for Large Fund Managers to comply with the baseline requirements (ie, until 20 August 2022) and a 15-month transition period for them to comply with the enhanced standards (ie, until 20 November 2022); and

(ii) a 15-month transition period for other Fund Managers to comply with the baseline requirements (ie, until 20 November 2022).

Reference:

https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/supervision/doc?refNo=21EC31

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GreenCo is a boutique ESG advisory firm providing ESG reporting, policy advisory, digital ESG evaluation solution and other strategic ESG integration solutions to public companies and fund managers looking for ESG integration. GreenCo has established international alliance with security firms, NGOs, accounting firms and asset managers for ongoing research and development in ESG solutions.

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