The International Capital Market Association (ICMA) has published the voluntary Hong Kong Code of Conduct for ESG Ratings and Data Products Providers. The development of the code was sponsored by the Hong Kong Securities and Futures Commission (SFC), which last year appointed the ICMA to provide the secretariat and convene an industry working group. In line with recommendations by the International Organization of Securities Commissions (IOSCO), the code focuses on promoting transparency, good governance, management of conflicts of interest, and strengthening systems and controls in the sector. A public consultation was also held earlier this year to gather feedback from market participants. Welcoming the involvement of key stakeholders from the private and public sectors, ICMA Chief Executive Bryan Pascoe said the association would continue to contribute to best practices in the market, as well as Hong Kong’s wider sustainable finance initiatives. “We congratulate the working group and ICMA for the successful finalisation of the voluntary code,” said Julia Leung, Chief Executive Officer of the SFC. “[It] will establish a benchmark for the provision of high-quality, reliable and transparent ESG information to combat greenwashing in Hong Kong’s growing green and sustainable finance ecosystem.” The code will be hosted and maintained by the ICMA, with ESG ratings and data providers encouraged to adopt it to enhance transparency and foster trust in their offerings.
