This case discusses how BOCHK utilizes and apply sustainable finance concepts to develop a new service - green mortgage which is the first ever green mortgage scheme offered in local market. The introduction of the scheme was considered as a substantial leap forward in the development of green finance in Hong Kong. The concepts was relatively new in Hong Kong in 2021. Being the first to navigate the uncharted water was not always an easy task, especially in a highly regulated industry and in a highly competitive market.
Despite great deal of uncertainty involved in new product development, BOCHK did not diverge from its mission to promote ESG in Hong Kong. To transform a relatively fresh but abstract concept into a feasible product offer, BOCKH conducted extensive research on similar products across different countries, and held thorough communications with partnering property developers and relevant councils. The scheme was finally launched in Hong Kong in phases in September 2021 and received positive feedbacks from various stakeholders.
Through the case, students will grapple with the following practical questions: 1) how should BOCHK roll out its green mortgage scheme and extend the scheme coverage? 2) How could management keep promoting this initiative? 3) Could this idea be expanded to other regions, Southeast Asia?
Students should be able:
- To understand green finance concepts
- To apply practical finance knowledge to develop ESG products to address social problems
- To understand various green finance standards in market and evaluate how these standards impact companies in designing relevant products
- To evaluate how ESG products and innovation can create synergies for a financial institution