【ESG News】Global Trends Biweekly Newsletter Issue 54 (2026.3.2-2026.3.15)

Hong Kong ESG trends

HKMC enhances Reverse Mortgage Programme and launches Green Promotion

The Hong Kong Mortgage Corporation Limited (HKMC) has been actively applying the principles of environmental, social and governance (ESG) in its work.  It is committed to operating business in a socially responsible and sustainable manner while implementing a high standard of corporate governance.  To promote the development of green and sustainable finance with environmental and social benefits, the HKMC is going to launch the following two initiatives: Enhancement to the Reverse Mortgage Programme, and Green Promotion. For more details, please refer to the Source.

Source: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/03/20260309-3/

Lianhe Green Insights

The HKMC has launched two initiatives in tandem: it has lowered the interest rates for the Reverse Mortgage Programme and increased monthly annuity payments to benefit retirees and boost the silver economy, while also rolling out a green promotion scheme that offers cash incentives to encourage mortgage applications for properties with Green Building Council certification. This move upholds ESG principles, balances livelihood protection with the development of green finance, and injects financial impetus into Hong Kong’s sustainable development.

International ESG trends

South Korea Moves to Mandate ISSB-Aligned Climate Disclosure for Major KOSPI Listed Firms

South Korea’s Financial Services Commission (FSC) has launched a consultation on a national roadmap to introduce mandatory sustainability reporting for major listed companies, aligning the country’s disclosure framework with the global standards set by the International Sustainability Standards Board (ISSB). South Korea proposes that starting from 2028, KOSPI-listed companies with assets exceeding 30 trillion KRW (20.4 billion USD) will be required to issue sustainability reports based on 2027 data. The disclosure of Scope 3 emissions will be postponed to 2030 to allow enterprises time to build value chain reporting infrastructure.

Source: https://esgnews.com/south-korea-moves-toward-mandatory-issb-aligned-climate-disclosures-for-large-kospi-firms/

Lianhe Green Insights

South Korea’s plan to mandate ISSB-aligned climate information disclosure for major listed companies marks a significant milestone in Asia’s sustainable development regulatory progress. This move not only enhances corporate transparency but also accelerates capital allocation to low-carbon sectors. Notably, its pragmatic strategy of “applying to large enterprises first with a delay for Scope 3 emissions disclosure” aligns with international standards while granting a buffer period to local businesses, offering valuable insights for other emerging markets to follow in this gradual reform approach.

Report from the European Commission to the Council and the European Parliament on the Preparedness of the EU Financial Sector

On 10 March 2026, the European Commission submitted a report on the ESG preparedness of the EU financial sector to the European Parliament. The report analysed the current state of play of financial institutions in implementing the Sustainable Finance Disclosure Regulation (SFDR) and addressing environmental risks. It noted that while compliance awareness has improved, challenges remain in terms of data consistency and stress testing.

Source: https://ec.europa.eu/transparency/documents-register/detail?ref=COM(2026)119&lang=zh

Lianhe Green Insights

The EU’s financial preparedness report reveals a key shift: building financial resilience is moving from static compliance to dynamic adaptation. It stresses that amid the interplay of geopolitical conflicts, climate risks and cyber threats, the core functions of the financial system—payments and credit—must be maintained under any crisis. This requires financial institutions to go beyond capital adequacy and develop “full-cycle” preparedness capabilities, from stress testing and cross-sectoral coordination to continuous learning and iteration. For Chinese firms, this means EU market access criteria are expanding from financial health to operational resilience assessments, and future compliance pressures will test both system responsiveness and crisis management capabilities.

MAS Issues Guidelines on Environmental Risk Management for Financial Institutions – Transition Planning

On 5 March, the Monetary Authority of Singapore (MAS) issued three sets of Environmental Risk Management Guidelines – Transition Planning, setting out regulatory expectations for banks, insurers, and asset managers respectively to address climate transition and physical risks for their own operations and investment portfolios.

Source: https://cj.sina.com.cn/articles/view/5953189932/162d6782c06703wuwc?froms=ggmp

Lianhe Green Insights

MAS’ latest guidelines extend climate risk management from the financial sector to real-economy enterprises, pushing them to strengthen climate disclosures and transition planning. Rejecting a one-size-fits-all approach, the authority encourages pragmatic transitions, offering a compliance buffer while setting a clear long-term direction for green business practices.

Mainland China ESG trends

Environmental Code of the People’s Republic of China to Take Effect on August 15

On March 12, 2026, the Fourth Session of the 14th National People’s Congress voted to adopt the Environmental Code of the People’s Republic of China, which will come into force on August 15, 2026, and simultaneously repeal 10 laws including the Environmental Protection Law. As China’s second law officially titled a “code,” it consists of 5 Parts and 1,242 Articles, covering General Provisions, Pollution Prevention and Control, Ecological Protection, Green and Low-Carbon Development, and Legal Liability

Source: http://lianghui.people.com.cn/2026/n1/2026/0313/c461827-40680958.html

Lianhe Green Insights

The adoption of the Code marks a pivotal shift in China’s ecological and environmental legislation from fragmented rules to a unified framework. With 1,242 articles, it is not merely a compilation of legal provisions but embodies a systematic approach to the integrated conservation of mountains, rivers, forests, farmlands, lakes, grasslands and deserts. The standalone part on green and low-carbon development transcends the “end-of-pipe treatment” model of traditional environmental law, realizing a paradigm shift from pollution control to the transformation of development models.

China Joins the Triple Nuclear Energy Declaration to Boost Global Green and Low-Carbon Transition

On March 10, 2026, at the second Nuclear Energy Summit held in Paris, France, China announced its accession to the Triple Nuclear Energy Declaration, which was initiated by 22 countries at the 28th UN Climate Change Conference. This move injects strong impetus into the sustainable development of global nuclear energy and the global green and low-carbon energy transition.

Initiated by France and 21 other countries, the Declaration’s core goal is to triple global nuclear energy capacity by 2050 compared with 2020 levels, supporting the achievement of global net‑zero emissions around mid‑century and the temperature control targets set out in the Paris Agreement. It puts forward 11 joint actions covering nuclear safety and spent fuel management, financing for nuclear projects, diversified use of nuclear energy, resilience of the nuclear industrial chain and supply chain, and life extension of operating nuclear power units. At this year’s Summit, following the accession of China, Brazil, Belgium and other countries, the Declaration has been joined by a total of 38 countries.

Source: https://www.caea.gov.cn/n6760338/n6760395/c10734460/content.html

Lianhe Green Insights

China’s accession to the Triple Nuclear Energy Declaration is a pivotal decision demonstrating strategic resolve and global vision. It not only reaffirms the technical pathway toward its “Dual Carbon” goals—nuclear power, as a stable, efficient and clean baseload energy source, will effectively offset the intermittency of wind and solar power—but also epitomizes China’s shift from a “participant” to a “co-builder of rules” in global climate governance. Through deep engagement in nuclear financing, supply chain resilience, spent fuel management and other issues, China is translating its full-fledged advantages in the nuclear power industrial chain into institutional discourse power internationally, providing a replicable “safe + efficient” model for green transition for Global South countries.