Singapore moves to guide companies through 'green' transition
IN a move to guide companies through a green transition, the Green Finance Industry Taskforce (GFIT), convened by the Monetary Authority of Singapore (MAS), issued a proposed taxonomy to help Singapore-based financial institutions identify green activities.
Of the proposed definitions, a "traffic-light" system was suggested to help classify activities as green, yellow (transition), or red according to their level of alignment with environmental objectives.
It also identified several environmental objectives and focus sectors to encourage financial institutions to adopt greener practises.
GFIT has invited interested parties to submit their comments on the taxonomy, which is 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 GFIT chairman Tony Cripps, who is also chief executive officer of HSBC Singapore.
Additionally, the task force also released a handbook on environmental risk management. This comes after MAS published a guideline last year on management of environmental risk to encourage banks to adopt a greener business model.
SEE ALSO
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
GFIT also said that it would work with industry associations to conduct workshops for financial institutions, to help 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 Ravi Menon, managing director of MAS.
"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," he added.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Luxury sector outlook clouded by China’s slow recovery
TikTok CEO expects to defeat US restrictions: ‘We aren’t going anywhere’
TikTok artists and advertisers to stay with app until ‘door slams shut’
Biden signs Ukraine aid, TikTok ban Bills after Republican battle
UAE announces US$544 million for rain repairs, says lessons 'learned'
HSBC says growing Chinese wealth fuels client investments in US