The following firm with a billion-dollar valuation will in all probability emerge from start-ups that use know-how to assist the world shift right into a net-zero financial system, mentioned specialists at Hong Kong’s inaugural Wealth for Good philanthropy summit.
The town, the world’s fourth-largest capital market, has the monetary ecosystem, expertise pool and laws to draw and nurture corporations that develop sustainable know-how (SusTech) to wean the worldwide financial system off fossil fuels and transfer in direction of zero emissions, they mentioned.
Household places of work managed by ultrawealthy tycoons are well-placed to nurture these SusTech corporations, as they method these investments with an eye fixed in direction of doing social good as an alternative of purely chasing returns.
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“The timing is ideal for ESG [environmental, social and governance] influence investments, [which] must be alpha-generating, not simply danger mitigating,” mentioned Poman Lo, founding managing accomplice of the sustainable know-how fund AlphaTrio Capital, who moderated a Wealth for Inexperienced panel on the summit. “Household places of work can flip these transition dangers into alternatives.”
Poman Lo, vice chairman of Regal Lodges Group, founding managing accomplice of AlphaTrio Capital and founding father of the Institute of Sustainability and Know-how, photographed in Causeway Bay on March 22, 2023. Picture: Xiaomei Chen alt=Poman Lo, vice chairman of Regal Lodges Group, founding managing accomplice of AlphaTrio Capital and founding father of the Institute of Sustainability and Know-how, photographed in Causeway Bay on March 22, 2023. Picture: Xiaomei Chen>
The summit, a part of the Hong Kong authorities’s clarion name for the world’s tycoons to arrange their household places of work within the metropolis, was divided into 4 panels to debate methods to make use of wealth in philanthropy, promote the humanities, put money into know-how and help ESG.
Hong Kong’s distinctive strengths are town’s open monetary system unhindered by capital controls, a very good expertise pool hosted by world-class universities and analysis labs, authorities help by the Hong Kong Science and Know-how Parks and a strong authorized system to guard mental property rights, mentioned the Hong Kong Inexperienced Finance Affiliation’s chairman, Ma Jun.
Hong Kong additionally presents plentiful “situations” the place inexperienced know-how or SusTech could be utilized, particularly in building, transport and the round financial system, mentioned Ma, who additionally spoke on the Wealth for Inexperienced panel.
“As soon as Hong Kong has change into a green-tech hub, the merchandise and applied sciences that it incubates can ultimately be utilized in mainland China and different international locations with a a lot bigger market dimension,” Ma mentioned on the sidelines of the summit, which was closed to the media.
He added that the federal government may assist facilitate the event of the ecosystem by launching inexperienced know-how incubators and accelerators, in addition to easing transactions between inexperienced tech and personal sector funding.
Lo’s panel on Friday afternoon was set to debate how investing in disruptive applied sciences with sustainable enterprise fashions can drive influence, how the dangers related to the transition to a net-zero financial system could be become alternatives and the way influence must be measured and managed, in accordance with an outline obtained by the Put up.
“Hong Kong is strategically positioned to be a inexperienced finance hub and in addition as a strategic bridge that connects each the most effective [sustainable tech] start-ups from the west to China, and vice versa,” mentioned Lo.
“Hong Kong must be able to deploy extra catalytic and strategic capital to construct itself right into a inexperienced finance and inexperienced tech hub. Hong Kong can actually be a bit extra daring … and never simply have a look at short-term monetary return, however really deploy that capital to assist our native start-ups develop.”
By itself, Hong Kong may not be capable of rival Silicon Valley, however along with the Larger Bay Space (GBA), it could actually compete, she mentioned.
“With high main universities like Hong Kong College of Science and Know-how and our connectivity to the GBA that provides us a inhabitants of 80 million, I feel we’re undoubtedly in a really strategic place to assist carry Western start-ups to China, and vice versa,” mentioned Lo.
To assist non-public buyers get entangled in sustainability, Hong Kong ought to develop a gaggle of private-equity and venture-capital companies that concentrate on sustainable applied sciences, Ma mentioned.
“Most non-public buyers and household places of work should not have the speciality in figuring out and assessing sustainable applied sciences in areas similar to renewable power, inexperienced transport, low-carbon building and the round financial system,” he mentioned.
“Philanthropists can do issues which the federal government ought to however [is] unable to do as a result of funds and useful resource constraints. Their inexperienced initiatives are largely public items in nature, and never in search of monetary returns.”
This text initially appeared within the South China Morning Put up (SCMP), probably the most authoritative voice reporting on China and Asia for greater than a century. For extra SCMP tales, please discover the SCMP app or go to the SCMP’s Fb and Twitter pages. Copyright © 2023 South China Morning Put up Publishers Ltd. All rights reserved.
Copyright (c) 2023. South China Morning Put up Publishers Ltd. All rights reserved.