Greening the Financial System
Factoring Climate-related Risks for MAS’ Investments
MAS would be improving the resilience of its investment portfolio to climate change by:
- Building capabilities to measure the impact of climate change on MAS’ portfolio such as the financial impacts from physical risks and transition risks. This would be done via scenario analyses for various temperature pathways, with shocks that manifested over both the short and long terms;
- Integrating climate change considerations into MAS’ investment process. This included working with MAS external managers to ensure that Environmental, Social and Governance (ESG) considerations were incorporated into their investment processes. Moreover, in MAS’ selection of external fund managers, we took into consideration how they were managing climate-related risk within their investment process.
MAS would continue to evolve our investment approach along with the development of new tools, methodologies and relevant best practices.