A new task force has issued guidelines to help Singapore-based financial institutions identify green activities.
They include a “traffic-light” system that can help classify activities as green, yellow (transition) or red according to how they align with environmental objectives. It also identified several environmental objectives to encourage financial institutions to adopt greener practices.
The Green Finance Industry Taskforce, as it is called, has invited interested parties to submit their comments on the classification guidelines, which are available on the Association of Banks in Singapore’s website, by March 11.
“The transition to a low-carbon economy calls for collective action across sectors, where financial institutions such as banks play a key enabling role,” said task force chairman Tony Cripps, who is chief executive of HSBC Singapore.
Additionally, the task force has released a handbook on environmental risk management. This follows a Monetary Authority of Singapore (MAS) guideline published last year to encourage banks to adopt a greener business model.
The task force, which has been convened by the MAS, will work with industry bodies to run workshops to help financial institutions strengthen their capabilities in environmental risk management.
“Our goal to make Singapore the leading green finance hub in Asia rests strongly on close public-private partnership,” said MAS managing director Ravi Menon.
“With MAS setting the expectations for sound environmental risk management and the industry coming together with practical solutions on how to meet these expectations, we will develop a more climate-resilient and environment-friendly financial system.”
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