Laura M Cha: Society is looking for trusted role model to help drive and define the speed of action on climate change, determine acceptable standards of corporate governance and to set actionable plans on everything from diversity to decarbonization.
Capital markets operators and regulators all over the world, including HKEX, therefore have a vital role to play in creating a sustainable future – our visibility and reach is broad and with this comes a responsibility to lead from the front. We must put purpose into practice.
Firstly, we need to develop a sustainable finance ecosystem to connect capital with opportunities in the ESG space. Creating platforms to provide information, access, and transparency on a wide range of sustainable, green, and social investment products, like green bonds, can be an effective conduit linking investors and issuers. This will help channel capital to fund the net carbon transition.
Secondly, capital markets must play a role to promote ESG awareness, enhanced regulations, and high standards of responsible corporate governance by advocating for and introducing strong ESG disclosures. As the investment world grows more exacting in its expectations of companies’ ESG performance, the standards that capital market regulators enforce around disclosures can eliminate greenwashing and provide the transparency that investors need to match their investment goals with ESG opportunities, which in turn can provide the capital to drive the net zero transition.
Thirdly, by walking the talk on sustainability and encouraging new ways of thinking and operating, we as regulators and participants can lead by example on ESG disclosure and reporting.
In areas such as promoting diversity and inclusivity around gender, families, and LGBTQ+ in the workplace; supporting employee wellness with internal wellness workshops and external activities; and invigorating our communities through meaningful philanthropy that drives societal change.
To read more from Laura, check out her World Economic Forum Blog here.