Strengthening Financial Sector Resilience to Environmental Risks

MAS issued Guidelines on Environmental Risk Management to enhance financial institutions’ resilience to environmental risks

8 December 2020

The Guidelines set out our supervisory expectations for banks, insurers and asset managers on their governance, risk management and disclosure of environmental risk. The Guidelines also aim to strengthen financial institutions’ (FIs) role in supporting the transition to an environmentally sustainable economy, in Singapore and in the region. 

Through virtual townhalls, MAS shared with the industry our policy thinking and supervisory approach in working with FIs to implement the Guidelines. We have also provided detailed responses to the feedback received from the public consultation on the Guidelines. 

MAS will continue to engage key FIs on their implementation progress and incorporate environmental risk in our supervisory assessment of FIs. By 2022, we will also incorporate a broader range of climate risks in thematic scenarios as part of our industry stress tests.