Investments that generate positive social and environmental impacts require specialized knowledge and expertise. The unique risk profiles associated with certain technologies, solutions or sub-sectors – often outside of traditional investment areas – make it challenging for investors to vet opportunities effectively. Coupled with limited access to reliable data, this can make it difficult for investors to assess investment readiness. Specialized expertise is also essential to track the full life cycle of these investments, ensuring that both financial progress and impact outcomes are monitored accurately. The long gestation periods of climate-related investments, which often span 15 to 20 years or more, are another hurdle, as they do not align with the shorter-term expectations of traditional investors. Given the novelty of many climate solutions, there is added risk in the uncertainty around how investments will mature and perform over time.Government involvement in markets like Hong Kong and Singapore, along with sustainability events such as the One Earth Summit in Hong Kong, are helping to raise awareness and increase the urgency around climate action. These initiatives are also helping to mainstream conversations about blended finance and natural capital, which are essential to scaling impact investments. While investing in climate resilience and climate- related assets could serve as a way to derisk portfolios against climate exposure, several experts pointed out that the necessary risk mitigation mechanisms, such as insurance structures and capital regulation, are not yet in place to incentivize such investments. To mobilize capital for positive environmental outcomes, the right financial structures need to be coupled with robust policy and regulatory frameworks,21 which is being explored in some areas, as illustrated in case study 6. The Green and Sustainable Finance Cross-Agency Steering Group (steering group, or CASG) of the Hong Kong Special Administrative Region (HKSAR) aims to coordinate the management of climate and environmental risks in the financial sector, accelerate the growth of green and sustainable finance, and support the HKSAR Government’s climate strategies. Comprised of financial regulators, the stock exchange and various government bureaux, the steering group members drive these efforts by discussing and coordinating their policies and regulation, addressing cross- sectoral challenges and monitoring global and regional trends. The steering group focuses on three key areas to capture financing and investment opportunities arising from the low- carbon transition of the Asia-Pacific region: Enhancing corporate sustainability disclosures with a view to adopting the IFRS Sustainability Disclosure Standards locally Promoting the use of green technology to support sustainability reporting and data analysis Supporting the development of transition finance to bolster Hong Kong’s role as a leading sustainable finance hub The steering group has also developed a website,22 which is a one-stop green and sustainable finance information hub for financial institutions, corporates and the general public. The website features a centralized sustainability data and information portal, greenhouse gas emissions calculation and estimation tools, a digitalized sustainability disclosure template, among other functions, which are free of charge for public use.CASE STUDY 6 Green and Sustainable Finance Cross-Agency Steering Group Accelerating Impact Investments for Climate and Nature in Asia 13

Accelerating Impact Investments for Climate and Nature in Asia 2025