Focus areas and schemes to develop Singapore as a global hub for sustainable finance.
Sustainable finance is the practice of integrating environmental, social and governance (ESG) criteria into financial services to bring about sustainable development outcomes, including mitigating and adapting to the adverse effects of climate change.
Singapore's financial sector can play a useful role in catalysing sustainable and green finance in the region. MAS is taking active steps to promote sustainable financing in our financial sector, including engaging financial institutions to consider ESG criteria in decision making processes, support the adoption of industry standards and guidelines, encourage industry-led capacity building efforts, develop the green bond market in Singapore and collaborate with local stakeholders and international counterparts to distill best practices.
Ms Jacqueline Loh, Deputy Managing Director (Corporate Development), shared on how central banks should embrace and lead financial sector innovation, and channel these capabilities towards improving sustainability and enhancing cross-border payments.
Mr Ravi Menon, Managing Director, MAS, spoke on the need to broaden the range of green financing solutions and markets; improve the consistency and transparency of ESG reporting and disclosure; and build knowledge and capabilities in sustainable finance.
Ms Jacqueline Loh, MAS’ Deputy Managing Director, spoke about the key trends and opportunities in Asian financial markets – focusing on opportunities from harnessing technology and in sustainable finance.
This consultation sets out MAS’ proposed Guidelines on Environmental Risk Management for all fund management companies and real estate investment trust managers. MAS is proposing to issue the Guidelines to enhance financial institutions’ resilience to and management of environmental risk.
MAS has launched the Green and Sustainability-Linked Loan Grant Scheme. The first of its kind globally, the GSLS will enhance corporates’ ability to obtain green and sustainability-linked loans. The GSLS will also encourage banks to develop frameworks for green and sustainability-linked loans.