By Armin P. Choksey – In the last few years, the world has witnessed significant progress in harmonising environmental, social, and governance (ESG) disclosure frameworks. The launch of new initiatives globally shows that both investors and stakeholders recognise the value of streamlining ESG disclosures and the importance of consolidating them.
By Armin P. Choksey – In the last few years, the world has witnessed significant progress in harmonising environmental, social, and governance (ESG) disclosure frameworks. The launch of new initiatives globally shows that both investors and stakeholders recognise the value of streamlining ESG disclosures and the importance of consolidating them.
Singapore stands at the cusp of green innovation. It has the prowess to not only become a sustainable development hub but also contribute effectively to global ESG research and standards.
Singapore leading the way
The regulatory push in Singapore has been encouraging to promote the adoption of ESG among financial institutions and the marketplace at large. Singapore’s pragmatic and progressive regulatory authority, Monetary Authority of Singapore (MAS), has been engaging financial institutions to consider ESG criteria in their decision making and product development process.
For instance, MAS’ Sustainable Bond Grant Scheme encourages the issuance of green, social and sustainability bonds in Singapore and is open to first-time and repeat issuers. Earlier this year, the MAS published the Environmental Risk Management (ERM) Guidelines for banks, insurers and asset managers to strengthen the financial sector’s role in the transition to an environmentally sustainable economy.
The Green Finance Industry Taskforce (GFIT) was convened by the MAS and comprises of representatives from financial institutions, corporates, non-governmental organisations, and financial industry associations. GFIT proposed a taxonomy and launched an ERM handbook; issued a detailed implementation guide for climate-related disclosures by financial institutions aligned with TCFD; introduced a framework to help banks assess eligible green trade finance transactions; and launched a whitepaper on scaling green finance in the real estate, infrastructure, fund management and transition sectors. GFIT also launched a series of workshops to build capacity in green finance for financial institutions and corporates
In early 2022, MAS will set out its regulatory expectations on the disclosure standards that must be met by retail funds in Singapore. This demonstrates the practical and focused approach of the regulator which has been a pillar of its success. The road to developing a global ESG standard is still some time to go but the journey has already begun with one initiative at a time.
PwC Singapore is committed to drive sustainable investments and create sustained outcomes. The firm is doing its part to help financial institutions shift towards sustainable investments given that’s the future direction. Singapore-headquartered Asian Investment Fund Centre is a part of PwC’s network of asset and wealth management industry specialists in Asia Pacific, offering a one-stop shop for various cross-border services.
Armin P. Choksey
Partner, Asian Investment Fund Centre, PwC Singapore
Armin leads PwC’s Asian Investment Fund Centre and its Asia Pacific Asset and Wealth Management Research Institute based in Singapore. His key areas of focus include: market entry, funds distribution strategies, operational due diligence, responsible investments strategy and implementation, target operating model, product development, policy initiatives, performance measurement and verification, product rationalisation and operational efficiency of the asset and wealth management business.
