Strategy
Overview
In the Sustainability Report 2021/2022, we outlined MAS’ strategy and approach to address climate-related financial risks associated with the investment of the Official Foreign Reserves (OFR). Since then, we have implemented various aspects of that strategy to identify, assess and manage climate risks and opportunities. This report builds on portfolio actions and metrics published in previous Sustainability Reports.
Formulate strategy informed by assessing portfolio returns impact over the long-term
Given uncertainty over transition pathways, carrying out scenario analysis that references multiple scenarios across a range of plausible outcomes can help with the assessment of the potential impact of climate change on portfolio risks and returns, and informs how the portfolio can be positioned, as the real-world transition evolves.
MAS conducts scenario analysis in partnership with GIC, Ortec Finance and Cambridge Econometrics. The most recent run was conducted in 2024, and additional information can be found in our Sustainability Report 2024/2025 .
The scenario analysis is typically conducted once every few years given the scale and long-term nature of the exercise. MAS will continue to review the need for updates and report findings accordingly.