Strengthening Financial Sector Resilience to Environmental Risks

Guidelines for Financial Institutions (FIs) on Transition Planning

18 October 2023

MAS issued a set of consultation papers proposing Guidelines on Transition Planning by banks, insurers and asset managers. Building on MAS’ existing supervisory guidance to FIs, the proposed Guidelines focus on FIs internal strategic planning and risk management processes to prepare for both risks and potential changes in business models associated with the global transition to a net zero economy and the expected physical effects of climate change.

Code of Conduct (CoC) for providers of environmental, social, and governance (ESG) Rating and Data Products

6 December 2023

MAS published the finalised Singapore CoC for ESG Rating and Data Product Providers and an accompanying Checklist for providers to self-attest their compliance to the CoC. The CoC was co-drafted with the industry, and was built upon IOSCO recommendations for good practices for such providers. The CoC aims to establish baseline industry standards for transparency in methodologies and data sources, governance, and management of conflicts of interest that may compromise the reliability and independence of ESG ratings and data products. The CoC also encourages disclosures on how forward-looking elements are considered in such products. Providers which have adopted the CoC are highlighted on the International Capital Market Association (ICMA) website, for easier identification by market users.