Global Trustee and Fiduciary Services Bite-Sized Issue 3 2025

9 QUICK LINKS CRYPTOASSETS CSDR EMIR FINTECH FSB OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE IRELAND LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 3 | 2025 Cross-Agency Steering Group Sets 2025 Priorities to Support Growth of Sustainable Finance in Hong Kong On 6 February 2025, the Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) set out three key priorities for this year to foster the growth of sustainable finance inHong Kong. 1. Developing a comprehensive sustainability disclosure ecosystem . With the publication of the Roadmap on Sustainability Disclosure in Hong Kong by the Hong Kong Special Administrative Region (HKSAR) Government, the Steering Group says it will take further actions to support the implementation of the International Financial Reporting Standards Sustainability Disclosure Standards in Hong Kong. The Steering Group says it will also work closely with stakeholders to provide technical assistance on sustainability reporting, develop a sustainability assurance framework, and deliver capacity building programmes in collaboration with the industry. 2. Reinforcing Hong Kong’s role as a leading sustainable and transition finance hub . To scale up the flow of green and sustainable finance, the Steering Group states that it is engaging the industry to expand the Hong Kong Taxonomy for Sustainable Finance to incorporate transition elements and add new sustainable activities. The Steering Group also works alongside the industry to develop operational guidance for practising transition finance in a sectoral approach. Furthermore, the Steering Group will set up a Transition Finance Knowledge Hub on its website. 3. Harnessing data and technology to facilitate sustainability reporting and promote sustainable financing activities . The Steering Group says it is developing the official Hong Kong Green Fintech Map with the industry, which will be published in the first half of 2025, in view of the potential of green fintech solutions in facilitating large-scale mobilisation of sustainable capital and enabling information flow with greater transparency and accessibility. Link to Full HKMA Press Release here Platform on Sustainable Finance Publishes Report: Simplifying the EU Taxonomy to Foster Sustainable Finance On 5 February 2025, responding to the European Commission’s mandate, the Platform on Sustainable Finance (the Platform) published a report that presents a set of evidence‑based recommendations to simplify taxonomy reporting and enhance its effectiveness. Following a comprehensive review of market practices, pilot projects, and stakeholder feedback from investors, banks, insurers, corporates, SMEs, auditors, and consultants, the Platform says that its report identifies key areas for improvement, including simplification, data access, and regulatory coherence. The Platform also states that, building on previous work, including the recommendations on data and usability (2022) and the compendium of market practices (2024), the report provides targeted recommendations to the European Commission. The report proposes five main measures to simplify taxonomy reporting: • Refining the “do no significant harm” (DNSH) assessment and reporting obligations by distinguishing between users (non‑financial vs. financial entities), uses (turnover vs. capital expenditure), and geographies (EU vs. non‑EU exposures); • Introducing a materiality principle applicable to all entities, materiality thresholds for all non‑financial company key performance indicators (KPIs), and a simplified DNSH assessment for the turnover KPI. Additionally, clarifying the KPIs related to operational expenditures calculation while limiting its mandatory scope to research and development; • Defining clear guidelines for the use of estimates within the taxonomy framework and establishing safe harbours for financial sector reporting; • Allowing proxies and estimates across all assets in the context of the green asset ratio and green investment ratio, while introducing a simplified retail assessment and a reduced denominator for asset classes strictly measurable against the taxonomy; and • Developing simplified and voluntary approaches for small and medium‑sized enterprises, as well as for banks and investors, to integrate the taxonomy into their disclosures. Link to Report here