28 June 2022
On 31 May 2022, the Monetary Authority of Singapore (“MAS”) published information papers on environmental risk management for banks, insurers and asset managers. The information papers provide an overview of the progress made in the implementation of the MAS Guidelines on Environmental Risk Management. The information papers are based on a thematic review conducted by MAS in 2021 on selected banks, asset managers and insurers (collectively, “financial institutions”).
The information papers highlight emerging and/or good practices by selected financial institutions, identify areas where further work is needed, and serve as a reference for these financial institutions as they continue to strengthen their resilience to environmental risk. These financial institutions should assess the applicability of the practices in the information papers as they work to bolster their resilience to environmental risk in a way that is commensurate to their size, nature of activities and risk profile. Particular attention should be paid to areas where further work is required, as highlighted in the papers.
MAS states that financial institutions should also pay attention to the impact of their efforts on business strategies and risks, as well as on the financial system and the broader transition to a sustainable economy. They also have to set tangible targets to address environmental risk with urgency and ambition.