Improving the quality of disclosures is vital to supporting the growth of green finance in Singapore. In this regard, the Green Finance Industry Taskforce (“GFIT“) issued an implementation guide for climate-related disclosures by financial institutions on 19 May 2021 (“Guide“). The Guide details the best practices that are aligned with the recommendations of the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures.
By focusing on climate-related disclosures, the Guide supplements the previously issued Monetary Authority of Singapore Guidelines on Environmental Risk Management for banks, asset managers and insurers (“ENRM Guidelines“), as well as GFIT’s handbook that provides practical implementation guidance and good practices on environmental risk management. The Guide is relevant to financial institutions which are expected to meet the expectations of the ENRM Guidelines, namely banks, asset managers and insurers.
This Update briefly explains what climate-related risks and opportunities are, with an overview of the main recommendations for disclosure in the Guide structured around four areas: governance, strategy, risk management, and metrics and targets. We will also highlight certain sector-specific and business-specific matters for consideration by banks, asset managers and insurers.
For more information, click here to read the full Legal Update.
