International Cooperation on Green Finance

Network for Greening the Financial System (NGFS)

The NGFS is a network of more than 90 central banks and financial supervisors that aims to enhance the role of the financial system to manage climate and environmental risks and mobilise capital for green and low-carbon investments. MAS is a founding member of the NGFS.

MAS is leading the NGFS workstream on microprudential supervision, which provides guidance on integrating climate and environmental risks into prudential supervision. The workstream is also studying potential financial risk differentials between green and other assets, and reviewing methodologies and metrics for climate and environmental risk analysis. MAS is also involved in other work at the NGFS to develop climate scenarios, scale up green finance, bridge data gaps, and advance research priorities.

Sustainable Insurance Forum

The SIF comprises 30 insurance regulators working to further sustainability efforts in the insurance sector. The SIF’s work include research on emerging risks, knowledge-sharing on supervisory practices, high-level policy engagement, and joint supervisory statements. 

In 2020, SIF members developed a new work programme for 2021-2023, which includes looking at how biodiversity loss can translate into financial risks for the insurance sector and the mainstreaming of climate risks into actuarial processes. MAS is involved in developing the contents for the above-mentioned work programs.

International Association of Insurance Supervisors

IAIS is an international standard-setting body responsible for developing and assisting in the implementation of principles, standards and other supporting material for the supervision of the insurance sector. Climate risk and sustainability are key themes of the IAIS Strategic Plan 2020-2024. IAIS carries out various activities at the policy and analytical level to support its member supervisors’ efforts to integrate climate-related risks into their insurance supervision work and support sustainable efforts in the insurance sector.

SIF and IAIS continue to collaborate closely in producing resources for insurance supervisors, including best practice guidance on the supervision of climate-related risks. MAS has been actively involved in the development of regulatory guidance and approaches through issues papers that IAIS have published in collaboration with SIF.

Basel Committee on Banking Supervision’s (BCBS) Task Force on Climate-Related Financial Risks (TFCR)

The BCBS is a global standard-setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters. It comprises central banks and bank supervisors from 28 jurisdictions. MAS participates in the BCBS’ TFCR that has analysed transmission channels and measurement methodologies of such risks. Building on this analytical work, BCBS is undertaking further work in three broad strands simultaneously spanning regulatory, supervisory and disclosure-related elements for the banking system.

Financial Stability Board (FSB)

The FSB is an international body that coordinates national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies. The FSB membership consists of 24 countries and 13 organisations including BCBS, IAIS and IOSCO. MAS is involved in the FSB’s work in reviewing the regulatory and supervisory approaches to address climate risk, and assessing the availability of data for monitoring such risk.

International Organisation of Securities Commissions (IOSCO) Sustainable Finance Task Force (STF)

The IOSCO STF comprises 20 IOSCO members, including US, EU, UK, Australia and China, with Sweden as Chair.  The Task Force aims to (i) improve sustainability–related disclosures made by issuers and asset managers; (ii) collaborate with other international organizations and regulators to avoid duplicative efforts as well as enhance coordination of regulatory and supervisory approaches; and (iii) prepare case studies and analyses of transparency, investor protection and other relevant issues to illustrate the practical implications of its work in sustainable finance.

MAS participates in the IOSCO STF’s work on improving sustainability disclosures by securities issuers and asset managers, and addressing potential emerging risks posed by ESG data and ratings providers, with a view to enhance investor protection. In particular, MAS co-leads a Technical Expert Group (TEG) with the US SEC within the IOSCO STF workstream on disclosure. The TEG’s work is expected to inform IOSCO’s views on endorsing an international sustainability standards board (ISSB) under the governance of the IFRS Foundation as the global standard-setter for sustainability-related corporate reporting.

International Platform on Sustainable Finance (IPSF)

Singapore is a member of the International Platform on Sustainable Finance (IPSF) which aims to enhance international coordination on taxonomies, disclosures and green standards and labels, to mobilise private capital towards environmentally sustainable investments. With its well-diversified geographical representation from 17 member jurisdictions across Asia Pacific, Europe, Americas and Africa comprising 55% of global GDP, IPSF is well placed to bridge regional and national initiatives. Other global sustainable finance initiatives, such as the NGFS and the IOSCO Sustainability Taskforce, are also observers in IPSF. This facilitates greater coordination across jurisdictions and initiatives.

Through the IPSF Working Group on Taxonomy, led by the European Union and China, Singapore contributes to efforts to develop a Common Ground Taxonomy that aims to scale up the mobilisation of cross-border green financing flows by highlighting commonalities between existing taxonomies of IPSF member jurisdictions. The IPSF has also launched a working group on corporate environmental-related disclosure and is considering the creation of a working group on standards and labels in the near future.

Executives’ Meeting of East-Asia Pacific Central Banks (EMEAP)

EMEAP is a cooperative forum of eleven central banks and monetary authorities in the East Asia and Pacific region including the Reserve Bank of Australia, People’s Bank of China, Hong Kong Monetary Authority, Bank Indonesia, Bank of Japan, Bank of Korea, Bank Negara Malaysia, Reserve Bank of New Zealand, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore and Bank of Thailand.

The EMEAP Monetary and Financial Stability Committee (MFSC) has identified Sustainable Finance as a key area of strategic interest for EMEAP members. As co-Vice Chair of the MFSC, MAS takes the lead in curating the Sustainable Finance agenda at MFSC meetings. The meetings provide members with a platform to exchange information on their respective sustainable finance initiatives and learn from each other’s experiences.

MAS is also a member of the Working Group on Banking Supervision (WGBS) Interest Group on Sustainable Finance (IGSF). The IGSF promotes information sharing amongst supervisors and provides regional views on climate-related risk management issues.

ASEAN Sustainable Finance Agenda

In March 2021, the 7th ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM) endorsed the development of a multi-tiered ASEAN sustainable finance taxonomy that will serve as the overarching guide for all ASEAN Member States (AMS), complementing their respective national sustainability initiatives and serving as ASEAN’s common language for sustainable finance.

The ASEAN Taxonomy Board (ATB), comprising representatives from the ASEAN capital market, banking, and insurance regulators, has been established to undertake the taxonomy development and incorporate an effective pathway to enable an orderly transition. MAS is Vice-Chair of the ASEAN Taxonomy Board and Chair of the workstream that is developing the “Plus Standard” of the ASEAN Taxonomy, to provide guidance on the classification of green and transition activities.

ASEAN Finance Cooperation Track

In addition, MAS is actively involved in the sustainable finance related work carried out under the four sectoral processes in the ASEAN Finance Cooperation track. These are:

  • the ASEAN Capital Markets Forum (ACMF) and the Working Committee on Capital Market Development (WC-CMD) that cover the capital markets sector;
  • the ASEAN Insurance Regulators Meeting (AIRM) that covers the insurance sector; and
  • the ASEAN Senior Level Committee (SLC) on Financial Integration that covers the banking sector.

ASEAN Capital Markets Forum (ACMF) and Working Committee on Capital Market Development (WC-CMD)

The ACMF is a high-level grouping of capital market regulators from all 10 ASEAN jurisdictions, which aims to develop a deep, liquid and integrated regional capital market. As part of the ACMF Roadmap for ASEAN Sustainable Capital Markets, the ACMF is looking into promoting corporate sustainability and institutional investor disclosures, developing sustainable fund standards and improving market access for sustainable products.

The WC-CMD comprises senior officials from ASEAN capital market regulators, Ministries of Finance, and Central Banks. The WC-CMD is tasked with implementing capital market development and capacity building initiatives to achieve the long-term goal of a more integrated ASEAN capital market. In 2020, the WC-CMD published a Report on Promoting Sustainable Finance in ASEAN, which sets out 16 recommendations. These include developing an approach for a “Sustainable Finance First for Sustainable Projects” initiative; and determining an appropriate sustainable taxonomy for ASEAN to adopt.  

ASEAN Insurance Regulators’ Meeting (AIRM)

The ASEAN Insurance Regulators’ Meeting (AIRM) is a grouping of the ASEAN insurance regulators. MAS coordinated the first stock-take of AIRM members’ initiatives on sustainability and green activities for the insurance sector in 2020 into a report submitted to the 6th AFMGM. As the 2021 Chair of AIRM, MAS is working closely with other AIRM members to develop AIRM’s workplan for sustainable insurance initiatives in ASEAN, which will include AIRM’s contributions in the development of an ASEAN taxonomy. The workplan is slated for discussion in the October 2021 AIRM meeting and finalised in time for the 8th AFMGM in 2022. 

ASEAN Senior Level Committee (SLC) for Financial Integration

The ASEAN Senior Level Committee (SLC) for Financial Integration is a high-level grouping of the ASEAN central banks. The SLC has prioritised sustainable banking as one of its key agenda items, and has established a Task Force for Sustainable Finance to take forward the recommendations from the Report on the Role of ASEAN Central Banks in Managing Climate and Environment-related Risks and the ASEAN Sustainable Banking Principles. The recommendations include deepening knowledge on climate and environment-related risk management through capacity building; developing an ASEAN Green Map for a coherent approach to manage climate and environment-related risks; and initiating the study and development of an ASEAN Taxonomy. MAS co-leads the workstream under the Task Force on the development of an ASEAN taxonomy.