Enhanced Competency Framework on Green and Sustainable Finance (PDF File, 1.0 MB)

The Hong Kong Monetary Authority, HKMA, has issued a circular primarily addressed at authorized financial institutions as regards an „Enhanced Competency Framework on Green and Sustainable Finance (ECF-GSF)“. In this circular, the HKMA informs that the Authority itself, the Hong Kong Institute of Bankers (HKIB), and the banking industry have joined efforts to prepare aforementioned enhanced framework which aims to establish transparent and common competency standards for individuals working in Green and Sustainable Finance (GSF) roles within the banking sector.
The framework will be introduced in two phases given that the area of GSF is quite new and still developing: The first phase, known as the Core Level, focuses on building a strong foundational understanding of Green and Sustainable Finance concepts and their practical application. The second phase, called the „Professional Level“, will deep dive into specialized domains, covering emerging market developments and regulatory trends in GSF. A guide to the phase one competency framework is attached to the circular.
The HKIB will be responsible for administrating the framework. In this context, it will organize training programs and examinations, grant certificates to qualified individuals, and maintain a public register of certified individuals.
The HKMA concludes the circular by noting that it expects all supervised institutions to adapt to the new framework and take it into consideration in their staff recruitment and development practices.
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The guide to the phase one competency framework covers key issues in this context such as
– the roles and functions within firms‘ operations the framework is suited for (e.g. persons engaged in climate risk management or sustainable investments;
– the key competencies the HKIB seeks to convey such as climate-related financial disclosures, risk management, sustainable product development;
– the process for becoming accredited; or
– the content of specific training modules.