Strategy
Overview
Strengthening Financial Sector Resilience to Environmental Risk
The financial sector is exposed to environmental risks through its financing, insurance, and investment activities. The financial impact on banks, insurers and asset managers (collectively, financial institutions (FIs)) can materialise through physical and transition risk channels. As Singapore’s integrated financial regulator, MAS is committed to play a leading role to bolster the financial sector’s resilience to environmental risks.
MAS continues to integrate environmental risk into its supervisory framework and processes at both firm and system-wide levels. MAS seeks to:
- Uplift environmental risk management practices of financial institutions through ongoing supervision and industry engagement,
- Deepen climate risk assessment capabilities through climate scenario analysis, and;
- Enhance climate-related disclosure practices to promote market transparency.
Enhance sustainability-related disclosures
MAS worked with the Singapore Exchange (SGX) to start to incorporate the climate-related disclosure requirements of the IFRS Sustainability Disclosure Standards for SGX-listed issuers from FY2025. Aligning disclosure requirements to internationally recognised standards such as the IFRS Sustainability Disclosure Standards, will enhance the consistency and comparability of quality climate-related information. This in turn enhances market discipline, investor protection, as well as access to new business opportunities.
The Basel Committee on Banking Supervision (BCBS) on 13 June 2025 published a voluntary disclosure framework on climate-related financial risks for jurisdictions to consider. MAS would study potential implementation options for Singapore. MAS will also review sector-specific requirements set out by international standard setting bodies such as the International Association of Insurance Supervisors (IAIS) Climate Disclosures Workstream, and consult on MAS’ requirements in due course.
MAS Information Paper on Good Disclosure Practices for Retail ESG Funds
On 4 December 2024, MAS published an information paper on Good Disclosure Practices for Retail ESG Funds. The information paper sets out good disclosure practices that Retail ESG Funds may adopt in their adherence with MAS’ Retail ESG Funds Circular . It also aims to promote clear disclosures which are capable of being substantiated to facilitate investors’ understanding of the key features and risks of a retail ESG Fund and mitigate greenwashing risks.
Collaborate with other central banks and financial authorities
MAS continues to contribute to global and regional efforts on sustainable finance through our participation in, and leadership of, international committees and platforms, to build expertise and align understanding amongst financial authorities on how FIs are managing climate-related risks.
MAS chairs the Sustainable Insurance Forum (SIF), International Association of Insurance Supervisors (IAIS)’s Climate Risk Steering Group, and the Basel Committee on Banking Supervision (BCBS)’s Transition Planning workstream. Regionally, MAS chairs the Working Group on Disclosure Standards at the ASEAN Capital Markets Forum (ACMF) and co-chairs the ASEAN Working Committee on Capital Market Development (WC-CMD).
Network for Greening the Financial System (NGFS)
The NGFS contributes to the development of environment and climate risk management in the financial sector, and to mobilise mainstream finance to support the transition toward a sustainable economy. MAS is a Steering Committee member of the NGFS and participates actively in various NGFS initiatives.Basel Committee Taskforce on Climate Related Financial Risks (BCBS TFCR)
MAS is active in the BCBS TFCR, which has worked over the past year to address climate-related financial risks to the global banking system across all three pillars of regulation, supervision and disclosure. On regulation, the BCBS TFCR studied the materiality of gaps in the existing Basel framework. On supervision, the BCBS TFCR monitored the implementation of Principles for the effective management and supervision of climate-related financial risks and reviewed banks' transition planning practices and the use of climate scenario analyses. MAS is leading the workstream on transition planning.International Association of Insurance Supervisors (IAIS)
The IAIS is the global 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. MAS chairs the IAIS’ Climate Risk Steering Group (CRSG), which oversees the IAIS’ work on climate risks. The IAIS published an Application Paper on the supervision of climate-related risks in the insurance sector in April 2025. The paper was developed by the CRSG over a two-year period and is intended to support insurance supervisors in effectively integrating climate-related risk into their supervisory practices, thereby strengthening the resilience of the global insurance sector.Sustainable Insurance Forum (SIF)
MAS chairs the SIF, previously chaired the SIF’s Capital and Supervisory Frameworks Working Group, and participates actively in the SIF’s Transition Plans Working Group. The SIF is a platform for international collaborative action on sustainability issues through a global network of insurance supervisors and regulators. They work together to strengthen their understanding of and responses to sustainability issues facing the insurance sector. The SIF’s work includes research on emerging issues and knowledge-sharing on supervisory practices.International Organisation of Securities Commissions (IOSCO)
The IOSCO is recognised as the global standard setter for financial markets regulation. MAS is an IOSCO member and has actively contributed to IOSCO’s initiatives. In November 2024, MAS as co-chair of the IOSCO Transition Plans Workstream, developed and published the IOSCO Report on Transition Plans which sets out how transition plans disclosures can support the objectives of investor protection and market integrity.ASEAN Capital Markets Forum (ACMF)
MAS chairs the ASEAN Capital Markets Forum (ACMF) Working Group A (WG-A) on Disclosure Standards, which is focused on promoting corporate sustainability disclosures. As chair, MAS continues to actively utilise the collaboration platform established with the ISSB to facilitate ongoing dialogue on the ISSB’s standards development and organise capacity building activities on the ISSB standards for stakeholders in the ASEAN sustainability reporting ecosystem.
ASEAN Working Committee on Capital Market Development (WC-CMD)
MAS co-chairs the ASEAN Working Committee on Capital Market Development (WC-CMD), whose mandate, amongst others, is to advance the sustainable finance agenda in ASEAN. The WC-CMD comprises ASEAN capital market regulators, Central Banks and Ministries of Finance, and works with other ASEAN sectoral bodies such as the ASEAN Capital Markets Forum (ACMF) and ASEAN Senior Level Committee on Financial Integration (SLC) to implement initiatives that promote the development and integration of ASEAN capital markets. These include the ASEAN Taxonomy for Sustainable Finance Version 3 and the ASEAN Transition Finance Guidance Version 2 to support a just, credible and orderly transition in the region.