The Monetary Authority of Singapore (MAS), the country’s central bank, is allocating USD1.8 billion from the foreign reserves to fund climate-related investments. It is also working towards promoting green finance in the financial sector while increasing safeguards against environmental risk.
The funds will be placed with five asset managers to assist Singapore in developing its green finance capabilities. The asset managers, who have not been named, will support sustainability efforts by introducing funds around environmental, social and government issues. They will also develop green finance expertise through training programmes. The asset managers will conduct more in-depth green finance research that is tailored to the region, as well as look at green financial technology solutions.
MAS will also seek to enhance climate-related financial disclosures by firms and expects all financial institutions and asset managers to start doing the same from June 2022. The Singapore The Singapore Exchange will also discuss with stakeholders regarding ways to improve listed companies’ sustainability reporting criteria.
