SFC welcomes industry-led public consultation on voluntary code of conduct for ESG ratings and data products providers

The Securities and Futures Commission (SFC) of Hong Kong has expressed its support for a public consultation launched by an industry-led working group regarding the development of a voluntary code of conduct (VCoC) for environmental, social, and governance (ESG) ratings and data products providers in Hong Kong. The SFC, which has sponsored the initiative, welcomes the introduction of this code as it aligns with international best practices recommended by the International Organization of Securities Commissions (IOSCO). The draft VCoC has been designed to be consistent with expectations in other major jurisdictions and is available in both English and Chinese to encourage widespread adoption. It includes a self-attestation document that enables providers to provide structured information on their adherence to the code, facilitating comparisons by end users such as SFC-licensed intermediaries during due diligence and assessment processes. The public consultation on the draft VCoC will be open for one month, ending on June 17, 2024. The SFC’s Chief Executive Officer, Ms. Julia Leung, expressed her optimism regarding the progress made by the industry-led working group and emphasized the importance of the code and self-attestation document in promoting transparency, quality, and reliability of ESG information, as well as enhancing the comparability of products. Mr. Bryan Pascoe, Chief Executive of the International Capital Market Association (ICMA), which is leading the working group, stated that ESG ratings and data products are crucial resources for the sustainable finance market. He expressed satisfaction in coordinating the working group and developing a voluntary code of conduct sponsored by the SFC, highlighting the organization’s vast experience in establishing industry-led standards and its global expertise in sustainable finance. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR89