This is a Hong Kong-focused practical guide. Sources and limitations are listed at the end of the page.
Know the financing structures
| Structure | What it links to | Common evidence need |
|---|---|---|
| Green or sustainability use-of-proceeds finance | Eligible projects or assets. | Project eligibility, allocation records, management of proceeds and impact reporting. |
| Sustainability-linked loan or bond | Borrower-level performance against defined KPIs and targets. | Baseline, calculation method, target ambition, annual performance and often external verification. |
| Transition finance | Credible movement of carbon-intensive or hard-to-abate activities toward a lower-emission pathway. | Transition plan, time-bound milestones, capital plan, governance and safeguards against locking in high-carbon activity. |
| Adaptation finance | Measures that reduce vulnerability to physical climate risks. | Hazard and vulnerability assessment, adaptation objective, asset-level actions and outcome indicators. |
What lenders usually request
- Organisational and facility boundaries.
- Energy, GHG and selected environmental data with methods and evidence.
- Material sustainability and climate risks.
- Board and management oversight.
- Targets, implementation plans and capital requirements.
- Previous incidents, controversies and regulatory matters.
- External assurance or verification where relevant.
Design credible KPIs
A financing KPI should be material to the borrower, measurable on a consistent boundary and difficult to achieve through normal business drift alone. Avoid targets that are already almost achieved, depend mainly on acquisitions or disposals, or can be met by changing the denominator.
Avoid weak sustainability performance targets
A target that is easy, poorly bounded or disconnected from capital decisions may create reputational risk and weaken the financing rationale even where the legal documentation is complete.
Use the Hong Kong Taxonomy
Hong Kong Taxonomy Phase 2A, published in January 2026, expands coverage to six sectors and 25 economic activities, introduces transition elements and adds climate-change adaptation as an environmental objective. It is a classification and communication tool, not a blanket label for an entire company.
Use it to test whether a particular activity meets the applicable technical criteria, transition conditions and safeguards. Document the assessment, data sources and any criteria that are not met.
Transition and adaptation finance
Hong Kong’s 2026–2028 sustainable-finance priorities emphasise transition planning, adaptation finance and stronger physical-risk assessment. Companies considering financing should connect the proposed use of capital to a broader plan, with governance, milestones, dependencies and reporting that can be monitored over time.
Prepare for a financing discussion
- Define the financing purpose and facility or activity boundary.
- Confirm which framework, taxonomy or lender methodology will be used.
- Prepare baseline data and calculation notes before negotiating KPIs.
- Test target ambition under realistic business scenarios.
- Agree responsibility for annual reporting and any external review.
- Keep the financing disclosure consistent with the ESG report and public claims.
Official sources
This page is grounded in the following official materials; requirements and market practice can change.
- Hong Kong Taxonomy Phase 2ACurrent HKMA taxonomy materials published on 22 January 2026.
- Cross-Agency Steering Group 2026–2028 prioritiesHong Kong priorities for transition finance, adaptation finance, disclosure and physical-risk capability.