MAS proposes guidelines to manage environmental risk

Published Thu, Jun 25, 2020 · 09:50 PM

Singapore

BUSINESSES which do not manage their environmental risk adequately could find themselves facing higher borrowing costs or limits on their loans down the road, if the proposed guidelines released by the Monetary Authority of Singapore (MAS) on Thursday are implemented.

Boards and senior management of financial institutions (FIs) are also expected to incorporate environmental considerations into their strategies, business plans and product offerings, said MAS.

These guidelines are part of a set of three consultation papers issued by the authority on environmental risk management for banks, insurers and asset managers, in efforts to shape Singapore into a global centre for green finance.

Co-created with FIs and industry associations, these guidelines set out MAS' supervisory expectations for FIs in their governance, risk management and disclosure of environmental risk.…