Investing in activities aligned with environmentally-friendly business practices is called green investment. Other than certification standards, a number of rating tools are also available to avoid any business greenwashing by assessing the investment value in terms of ESG or sustainable development. Commonly used tools include MSCI ESG Rating, Fitch ESG Rating, Morning Star ESG Rating, GRESB, CPD and HSI ESG Rating, etc. The Securities and Futures Commission of Hong Kong added the Type 10 license in 2018 to regulate the credit rating activities in Hong Kong.

Green investment can also be divided into direct investment and indirect investment. Direct investment applies to the development or the relevant company. If an agent is engaged for managing your investment, it would be a kind of indirect investment.

Learn more from the full article (in Chinese only) written by Kenny Siu, Senior Advisor of AEC Group, published on Sing Pao on 27 December.