Policies and Measures Adopted by the MPFA 積金局採取的政策及措施

Purpose of the Sustainable Investing Principles 可持續投資原則的目的

In 2021, the MPFA developed the Principles for Adopting Sustainable Investing in the Investment and Risk Management Processes of MPF Funds. It considered views from the MPF industry and relevant local and international requirements concerning ESG integration and disclosure.

The Principles provide a high-level framework for trustees to bring ESG factors into investment and risk management and give members relevant information. Candidates should remember the financial risk management purpose and the four elements: governance, strategy, risk management and disclosure. [MPFA: Sustainable Investing Overview](https://www.mpfa.org.hk/en/mpf-investment/sustainable-investing/overview)

The Four Elements and the Trustee’s Role 四大範疇與受託人的角色

Governance: trustees should use a governance framework to oversee how investment managers manage ESG risks. The focus is the trustee’s oversight arrangements; appointing an investment manager does not remove the need for oversight.

Strategy: trustees should develop an ESG integration strategy at MPF scheme level. This concerns the scheme’s approach as a whole, rather than simply listing individual fund names.

Risk management: trustees should ensure that ESG factors are considered in both investment and risk management processes. Mentioning ESG in promotional material alone does not demonstrate integration into those processes.

Disclosure: trustees should explain their ESG integration strategies and regularly report implementation progress, including the metrics and targets adopted. A strategy explains the intended approach; progress reporting explains what has been put into practice. [MPFA: Sustainable Investing Principles](https://www.mpfa.org.hk/en/-/media/files/information-centre/legislation-and-regulations/circulars/mpf/20211126/cir-20211126.pdf)

Annual Scheme Governance Reports 年度計劃管治報告

Trustees must prepare an annual governance report for each MPF scheme under their trusteeship and make it available on their websites within six months after that scheme’s financial year end. Reporting is scheme-specific, and the deadline follows the scheme’s financial year.

The report must disclose the scheme’s sustainable investing strategy and implementation progress following the guidance in the sustainable investing Principles. The latest bilingual governance reports of all MPF schemes are also available on the MPFA’s website for members to access. [MPFA: MPF Investment FAQs](https://www.mpfa.org.hk/en/info-centre/faq/mpf-investment/mpf-investment)

Member Communication and Metrics 成員溝通與衡量指標

Trustees must communicate with scheme members using plain language and explanations that are easy to follow. Technical terms should be explained rather than used without explanation.

Trustees may consider disclosing helpful metrics, such as carbon footprints, particularly where ESG risks and opportunities are assessed as relevant and material to members’ interests. Distinguish the requirement for clear communication from the possible use of a particular metric: carbon footprints are an example, rather than a prescribed metric for every scheme. [MPFA: Circular on Enhanced Governance Report Disclosures](https://www.mpfa.org.hk/-/media/files/information-centre/legislation-and-regulations/circulars/mpf/20241216/20241216_circular-letter-on-governance-report.pdf)