The guidelines aim to enhance financial institutions' resilience to environmental risk, and strengthen the financial sector’s role in supporting the transition to an environmentally sustainable economy.
The Monetary Authority of Singapore (MAS) on Friday issued consultation papers on Environmental Risk Management Guidelines for banks, insurers and asset managers.
The guidelines, part of MAS’ Green Finance Action Plan for Singapore to become a hub for green finance, set out supervisory expectations for financial institutions in governance, risk management, and disclosure of environmental risk.
«Clear Challenges»
«Even as FIs, regulators and policymakers grapple with Covid-19 and its impact, it is crucial to keep our focus on environmental issues as they pose clear challenges for our economies and financial systems,» Ong Chong Tee, MAS deputy managing director said in a media statement.
Ong added that financial institutions need to strengthen their resilience against environmental-related events as part of business and risk management strategies.
Environmental Resilience
MAS in 2019 unveiled its Green Finance Action Plan to build financial system resilience to environmental risk, develop green finance solutions and markets, and leverage innovation and technology.
It also announced a $2 billion program to support the growth of this sector.
