【ESG News】Global Trends Biweekly Newsletter Issue 52 (2026.1.26-2026.2.8)

Hong Kong ESG trends

Cross-Agency Steering Group announces Strategic Priorities for 2026 to 2028

The Green and Sustainable Finance Cross‑Agency Steering Group (Steering Group) convened its 12th meeting on 29 January, setting out its strategic priorities for 2026 to 2028, to further strengthen Hong Kong’s role as a competitive and future‑ready sustainable finance centre.

Building on the solid foundation of the 2023 to 2025 plan, the Steering Group’s strategic priorities for the next three years are anchored around two key pillars:

1.    Consolidate and strengthen efforts to solidify Hong Kong as a sustainable finance centre

2.    Develop Hong Kong’s strengths in emerging areas

Source: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/01/20260130-3/

Lianhe Green Insights

The sustainable finance strategy for 2026-2028 released by the Steering Group underpins Hong Kong's status as a financial centre with two pillars: it not only improves the sustainability disclosure ecosystem and facilitates cross-border capital flows, but also lays out plans for transition finance and climate adaptation finance. Aligned with international standards and featuring an updated sustainable finance taxonomy, this strategy will enable Hong Kong to seize the opportunities presented by Asia’s low-carbon transition and consolidate its core competitiveness as a global sustainable finance hub.

International ESG trends

ICMA Publishes Commentary and Recommendations for the SFDR Review

ICMA welcomes the direction of travel of the SFDR 2.0 which takes into account industry feedback for a simplified disclosure regime and a clearer ESG fund categorisation system. As per the Commission’s proposal, the latter would consist of “Transition”, “ESG Basics”, and “Sustainable” categories. Otherwise, ICMA’s recommendations for further improvement and clarification focus on the following:

For the general aspects of the SFDR:

§   Extension of exclusions to legacy coal exposure

§   Treatment of non use-of-proceeds (UoP) instruments of public entitie

§   Voluntary disclosure for all relevant funds

§   Effective implementation

For the treatment of UoP bonds and funds

§   Explicit recognition of credible market standards and other credible tools

§   Application of category exclusions to UoP bonds and funds.

Source: ICMA publishes commentary and recommendations for the SFDR review » ICMA

Lianhe Green Insights

In February 2026, ICMA released its commentary and recommendations on SFDR 2.0. It acknowledged the reform direction of simplified disclosures and the restructure of the ESG fund classification system, and put forward detailed propositions regarding the exclusion of legacy coal exposure and the treatment of non-UoP instruments of public entities. It also clarified the credible market standards for non-UoP bonds and relevant recommendations on the application of classification rules. These efforts provide industry-practical references for the EU’s subsequent legislation and help enhance the implementability of the EU’s sustainable finance regulation.

Mainland China ESG trends

Shanghai, Shenzhen and Beijing Stock Exchanges Jointly Issue Revised Guidelines for the Preparation of Listed Companies' Sustainable Development Reports

On January 30, under the overall guidance of the China Securities Regulatory Commission (CSRC), the Shanghai, Shenzhen and Beijing Stock Exchanges jointly issued or revised the relevant guidelines for the preparation of sustainable development reports, adding three environmental guidelines related to pollutant emissions, energy utilization and water resource utilization.

Source: https://stcn.com/article/detail/3622770.html

Lianhe Green Insights

The issuance of the sustainable development report guidelines by the Shanghai, Shenzhen and Beijing Stock Exchanges marks a new stage of standardization and refinement for ESG information disclosure by A-share listed companies. The guidelines not only clarify the disclosure standards and practical paths for listed companies, forcing them to strengthen sustainable development management, but also provide guidance for their compliant disclosure, helping enterprises consolidate the foundation of development and connect with the green capital market.

MEE Holds Executive Meeting

On January 26, Minister Huang Runqiu of the Ministry of Ecology and Environment (MEE) presided over an executive meeting of the ministry, which reviewed and approved in principle the Circular on Further Strengthening the Administration of Ozone-Depleting Substances and Hydrofluorocarbons and the Method for Calculating Automobile Air Pollutant and Greenhouse Gas Emissions (Traffic Volume Method) (hereinafter referred to as the Calculation Method).

The meeting pointed out that strengthening the management of controlled substances such as ozone-depleting substances and hydrofluorocarbons is a key measure to implement the newly revised Regulations on the Administration of Ozone-Depleting Substances and the National Programme of China for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer (2025-2030). It emphasized that the formulation of the Calculation Method will facilitate the coordinated control of automobile air pollutants and greenhouse gases, and provide strong technical support for the environmental supervision of mobile sources and the response to heavy air pollution weather.

Source: https://www.mee.gov.cn/ywdt/hjywnews/202601/t20260127_1142659.shtml

Lianhe Green Insights

The new policies issued by the MEE are precisely aligned with the core goals of carbon peaking, carbon neutrality and environmental protection. On the one hand, they strengthen the whole-chain regulation of ozone-depleting substances and hydrofluorocarbons, drive the green transition of relevant industries, and fulfill China’s international treaty obligations. On the other hand, the introduction of the automobile emission calculation method provides technical support for the supervision of mobile sources, refines the prevention and control of air pollution, and demonstrates the systematicness and professionalism of ecological governance.