Building a greener planet together: key experts share insights at the MPF Symposium on the future of sustainable investing in Hong Kong

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With close to HK$1.3 trillion total net asset value at the end of 2024,  Hong Kong’s Mandatory Provident Fund (MPF) is not only an important resource for Hong Kong workers’ basic retirement protection,  but also a financial juggernaut propelling the city’s ascent as a global green finance hub. As sustainability becomes more important, the MPF’s approach to integrating sustainable investing principles is proving vital, balancing long-term value creation with pressing risks like climate change and corporate governance lapses.

To spotlight these trends and boost transparency in ESG-focused MPF funds, the MPFA recently hosted the “MPF Symposium – Sustainability for MPF,” buzzing with various perspectives of key players. The event, with participation from professionals, government officials, regulators and academics, underscored Hong Kong’s trailblazing role in green finance—a role vividly outlined by Secretary for Financial Services and the Treasury of the HKSAR, Mr Christopher Hui.

Mr Hui painted a striking picture: as of December 2024, over 220 ESG funds, managing approximately HK$1.2 trillion, are in operation with approval from the Securities and Futures Commission (SFC). “Between 2021 and 2023, Hong Kong led the [Asian] region in arranging green and sustainable bonds,” he said. “In 2023 alone, the total issuances of green and sustainable debt surpassed US$50 billion, with green and sustainable bonds accounting for US$30 billion—37 percent of the regional total.” These aren’t mere numbers, Mr Hui emphasised—they’re proof of Hong Kong’s magnetic pull and robust capacity to fund projects that shield the planet. Add to that the government’s issuance of HK$220 billion in green bonds, fueling sustainable infrastructure and innovation, and the city’s green credentials shine even brighter.

The MPFA itself is setting the pace. Its “Principles for Adopting Sustainable Investing in the Investment and Risk Management Processes of MPF Funds” offers trustees a guideline to weave ESG into their investment and risk management strategies and share those efforts with scheme members via annual governance reports. “We’re diversifying MPF portfolios by integrating sustainable instruments that not only finance ESG initiatives but also enhanced risk-adjusted returns,” Mr Hui noted, adding that Hong Kong has pioneered a mechanism that prioritises institutional green bond allocations to MPF schemes, marrying environmental goals with a resilient retirement fund system.