[Monthly Report] Hong Kong Releases Operational Guide for ICT Transition Finance: A Reference for Low-carbon Financing of Tech Enterprises

Hong Kong Releases Operational Guide for ICT Transition Finance: A Reference for Low-carbon Financing of Tech Enterprises

 

Background

Against the backdrop of accelerated global climate governance and low-carbon transition, transition finance has become a core pillar for the green upgrading of high-carbon and transition-oriented industries. As an international hub for sustainable finance, Hong Kong has taken the lead in piloting the Information and Communications Technology (ICT) sector.

In May 2026, the industry working group led by the Hong Kong Green and Sustainable Finance Cross-Agency Steering Group compiled the Phase 1 Report: Mobilising Finance for the Transition of the Technology Sector (the Report)[1]. The Report explores how existing international guidelines and frameworks for transition finance and transition plan disclosure can be implemented in the ICT sector of Hong Kong and the broader Asia Pacific region. It fills the gap of rules for transition financing in the ICT field and serves as a vital reference for tech enterprises and financial institutions worldwide. This paper interprets the core content of the report from four dimensions: release background, evaluation system, practical cases and industrial value.

 

Core Reasons for Selecting ICT as the First Pilot Sector

The ICT sector covers sub-sectors including telecommunications, software and information technology services, data processing and hosting, and computing infrastructure. It was chosen as the first pilot industry for three key reasons:

l  Mounting energy consumption pressure: Generative AI has driven a sharp surge in demand for computing power. It is projected that the power consumption of global data centres will quadruple by 2035. Fossil fuels will remain the main energy source in the short term, hindering the energy transition process.

l  Dual attributes: The ICT sector itself is highly energy-intensive, while its technologies can provide energy-saving and decarbonisation solutions for all industries.

l  Strong capital demand: A large number of ICT enterprises are listed in Hong Kong. The market urgently needs unified standards to identify genuine low-carbon transition practices and prevent greenwashing.

To provide insights on the emission pathway specific for the ICT sector, the Science Based Targets initiative (SBTi) and the International Telecommunication Union (ITU) have developed Greenhouse Gas (GHG) Emissions Trajectories for the ICT Sector. In general, the ICT industry globally would need to reduce 45% of emissions from a 2020 baseline by 2030. It is worth noting that the trajectories developed by SBTi and ITU are geographically agnostic, and further effort is required for countries that wish to devise region-specific trajectories.

 

System Construction: Standardised Evaluation Framework Built on Three Dimensions

The industry working group reviewed 13 major transition finance frameworks, and established a complete evaluation standard combining qualitative requirements and quantitative indicators centering on governance structure, implementation strategy and quantitative targets, distinguishing universal requirements for all industries and exclusive control rules for the ICT sector.

1.     Governance, Accountability and Transparency

Governance

l   Climate change oversight

l   Linkage of executive remuneration to climate

l   Actions to assess, maintain and build internal capacity

l   External verification of climate-related disclosures

Policies supporting implementation strategy

l   Climate change policy

l   GHG emissions reduction policy

l   Energy efficiency policy

l   Transition plan

2.     Delivery Strategy: Whether clear goals and priorities have been set, a comprehensive implementation plan formulated, and the direction of transition actions defined.

Taking action – ICT sector specific

l   Data centre development and operation

l   Systemic risk management from technology disruptions

l   Ability to improve the emissions profiles of other sectors (e.g. increasing energy efficiency, reducing GHG emissions, or maximising product use)

3.     Metrics and Targets: Whether carbon emission targets are science-based and aligned with national and industrial development pathways. Meanwhile, phased goals and performance indicators (including operational and financial indicators) shall be clearly defined and continuously monitored, so as to make the transition measurable and comparable.

ICT sector specific

l   Total energy consumption

l   Power usage effectiveness

l   Carbon usage effectiveness[2]

l   Water usage effectiveness

l   Total water withdrawal

l   Waste recycled

l   Percentage of products manufactured or sold with a circular design

 

Practical Cases: Diversified Transition and Financing Models of Leading Enterprises

To enhance the practical value of the guide, the Report includes three benchmark cases of Alibaba Cloud, Lenovo and Tencent, presenting differentiated transition pathways and financing models for replication across the industry.

Alibaba Cloud

It focuses on low-carbon operation of data centres and green financing. The company increases the proportion of clean energy via long-term renewable power purchase agreements and distributed photovoltaics, and optimises power usage effectiveness (PUE) by adopting liquid cooling and self-developed power supply technologies. It balances energy consumption and water use according to local water resource conditions. Meanwhile, Alibaba Cloud issues sustainability bonds in the international capital market to fund low-carbon renovation projects, with a long-term goal of achieving 100% clean energy coverage for data centres by 2030.

Lenovo

It commits to full value chain decarbonisation for hardware manufacturing. Scope 3 emissions account for over 99% of its total carbon footprint, so supply chain emission reduction is its core focus. Lenovo incorporates most core suppliers into the low-carbon management system, requiring suppliers to complete Carbon Disclosure Project (CDP) disclosure and obtain SBTi certification. It organises joint renewable power procurement with upstream and downstream partners to cut transition costs, and independently develops carbon accounting tools for external services. Green financial instruments are adopted to support low-carbon upgrading of the entire industrial chain.

Tencent

Guided by science-based carbon targets, it has obtained SBTi certification and clarified phased emission reduction indicators. The company builds a carbon emissions data platform for refined management, and embeds environmental clauses into supplier management systems. Beyond internal decarbonisation, Tencent leverages its platform ecosystem to invest in low-carbon venture capital projects and forward-looking low-carbon technologies, expanding transition from individual enterprises to industrial-wide climate empowerment.

 

Empowering Industrial Transition and Expanding Cross-border Financing Channels

The release of the guide delivers both normative and practical value for the industry. For ICT enterprises, the clear evaluation framework sets standards for internal low-carbon management and ESG disclosure. Mainland enterprises can follow the rules to optimise their transition systems, access Hong Kong’s sustainable finance market smoothly, and expand financing channels such as green credit and transition bonds. For financial institutions, unified indicators and evaluation logic simplify credit assessment, help identify high-quality transition entities accurately and mitigate investment risks.

In the long run, the Report marks the first step of Hong Kong’s exploration of transition finance. Subsequent phases of reports will be launched to expand relevant rules to more sectors. Leveraging Hong Kong’s strengths as an international financial centre, the ICT sector standards will be gradually promoted to other high-carbon transition industries, driving the coordinated development of green finance and transition finance, and helping the region and the world achieve carbon peaking and carbon neutrality goals.

 

Practical Challenges Facing the ICT Sector

Two major challenges remain for the low-carbon transition of the ICT sector:

1. Insufficient supply of clean energy restricts the delivery of decarbonisation targets

Clean energy supply varies across Hong Kong and the broader Asia Pacific region. Limited clean energy access in Hong Kong conflicts with the massive power demand of computing services. It is difficult to fully meet the SBTi scientific emission reduction and carbon neutrality targets in the short term. Therefore, the transition plan and evaluation system should avoid relying solely on absolute energy consumption indicators, and adopt energy consumption intensity as a core assessment criterion. Combined with phased management requirements, the revised rules will better adapt to the business realities of local ICT enterprises amid business expansion.

2. Insufficient attention to physical risks

Current transition measures for the ICT sector mainly focus on emission reduction targets, energy efficiency indicators and supply chain management, while ignoring physical risk control. Extreme weather such as high temperature, floods, droughts and typhoons will threaten the stable operation of core ICT infrastructure including data centres and communication base stations, causing equipment shutdown and computing power interruption, and further triggering systematic operational risks across all industries relying on ICT services. Hence, physical risks should be included in regular monitoring and management when enterprises formulate low-carbon transition plans and financial institutions conduct investment and financing assessments.