MAS Earmarks US$1.8 Billion for Its Sustainability Efforts

MAS Earmarks US$1.8 Billion for Its Sustainability Efforts

by June 10, 2021
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The Monetary Authority of Singapore (MAS) will be allocating US$1.8 billion into climate-related investment opportunities which was announced during the launch of its inaugural sustainability report.

The funds will be managed by five asset managers, who are yet to be named, under MAS’ Green Investment Programme (GIP) to oversee the new equity and fixed income mandates focused on climate change and the environment.

The GIP was first announced in November 2019 at the Singapore Fintech Festival.

The asset management firms appointed under the GIP will establish their Asia Pacific sustainability hubs in Singapore and launch new ESG thematic funds for the Asia Pacific region.



The GIP will help to enhance the climate resilience of the OFR, attract sustainability-focused asset managers to Singapore, and catalyse funding towards environmentally sustainable projects in Asia and beyond.

MAS said in a statement that it will expect its external fund managers to be more active stewards of the companies they invest in, particularly on climate-related matters by exercising their shareholder rights to address climate risks and shift towards more sustainable practices.

The regulator has been actively promoting green fintech by earmarking S$50 million to support innovations in the space. Additionally, MAS has launched Project Greenprint, a technology platform to support the green finance ecosystem together with the industry.

The project will identify use cases where technology can help to mobilise capital for green projects, monitor commitments to emissions reductions, and quantify the impact of abatement efforts.

In line with MAS’ bid to support initiatives to foster efficient markets to trade carbon credits, DBS Bank, SGX, Temasek, and Standard Chartered announced plans to launch Climate Impact X, an international marketplace for high-quality carbon offsets generated from nature-based solutions in Southeast Asia.

Ravi Menon

Ravi Menon

Ravi Menon, Managing Director at MAS said,

“Just as MAS holds the financial sector to account for its efforts to support a green economy, MAS believes it too is accountable for the financial sector’s progress and its own efforts in facilitating a lower carbon future.

 

This inaugural Sustainability Report brings together the efforts that MAS is undertaking through its different roles to contribute towards a climate resilient and environmentally sustainable world. We aim to lead by example, and we hope that financial institutions in Singapore and Asia will follow.”

The full MAS Sustainability Report is available here.

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