BOC Hong Kong and Deloitte China Jointly Release Research Report to Help Hong Kong Drive Global Gold Governance Transformation Towards "Sustainable Gold"

BOC Hong Kong (02388) and Deloitte China have jointly released a research report titled "Leading Asia, Connecting the World: The Positioning and Future Outlook of Hong Kong's Sustainable Gold Standard System and Governance Framework," offering insights on establishing a sustainable gold standard system and governance framework in Hong Kong. The report highlights that the gold industry chain has long been concerned with multi-faceted Environmental, Social, and Governance (ESG) challenges, including carbon emissions, environmental pollution, and labor rights. While the industry has historically practiced the concept of "responsible gold," focusing on ESG risk management in areas like gold mining and smelting to ensure legal sourcing and minimize impacts on the environment and communities, the proliferation of global green finance and sustainable investment is shifting the governance philosophy. This shift is moving from risk management to "value creation," extending from partial improvements to comprehensive sustainable development, and prioritizing long-term prosperity over short-term gains. The report explores the core concepts of transitioning from "responsible gold" to "sustainable gold," considering various domains such as international standard alignment, whole-industry-chain governance, due diligence and traceability, verification and certification, transparency building, and standardized operations. It systematically analyzes the necessity and core elements for Hong Kong to build a sustainable gold standard system and governance framework with local characteristics that is also aligned with international practices. Furthermore, it proposes multiple action recommendations across three dimensions—standard setting, capacity building, and industry promotion—including a layered standard-setting mechanism, establishing a credible third-party certification system, forming an industry alliance, and launching innovative financial instruments. Zhang Jianguang, General Manager of the Planning and Development Department at BOC Hong Kong, stated, "As a 'super connector' and 'super value-adder,' Hong Kong is actively building itself into a globally influential gold trading hub, storage, clearing, and risk management center by expanding physical gold storage facilities, enhancing market infrastructure, and offering a more comprehensive range of gold products. With the rapid development of the global sustainable finance market, Hong Kong's unique geographical advantages, robust financial infrastructure, and forward-looking ESG regulatory framework position it favorably to promote the establishment of sustainable gold standards. We hope this report provides new ideas and frameworks for the sustainable development of Hong Kong's gold market, injects more Asian perspectives into the global gold governance system, and enhances its comprehensiveness and inclusivity." Shen Bo, Director of Assurance at Deloitte China, pointed out, "This report compares and provides an in-depth analysis of the current state of mainstream global responsible gold standards and their application prospects and alignment directions within the Hong Kong market. As a critical bridge connecting Mainland China with the world, Hong Kong possesses unique potential to integrate international standards with local practices. We look forward to Hong Kong playing a greater leading role in the global gold supply chain through this framework, contributing Hong Kong's wisdom to sustainable finance and the green transition." As one of the member institutions of the "Task Force on Promoting the Development of the Gold Market" in Hong Kong, BOC Hong Kong actively supports the work of the Financial Services and the Treasury Bureau related to gold market development. It is committed to fostering industry collaboration and top-level planning to support Hong Kong's goal of becoming an international gold trading center. Moving forward, BOC Hong Kong will continue to leverage its strengths to promote Hong Kong's status as a global sustainable finance hub, further consolidating its position as an international financial center.