Guide for climate-related disclosures, framework for green trade finance launched

The task force's mandate is to help accelerate the development of green finance through the development of a taxonomy.
The task force's mandate is to help accelerate the development of green finance through the development of a taxonomy.ST PHOTO: KUA CHEE SIONG

SINGAPORE - A guide for climate-related disclosures and a framework for green trade finance was launched on Wednesday (May 19) to improve disclosures and foster green financial solutions.

The guide, which details implementation of climate-related disclosures by financial institutions, was issued by the Green Finance Industry Taskforce (GFIT), said the Monetary Authority of Singapore (MAS), which is also the convener of the task force.

In addition, the GFIT framework will help banks assess eligible green trade finance transactions, it said.

The GFIT also issued a White Paper on scaling green finance in the real estate, infrastructure, fund management and transition sectors, MAS said.

The task force will launch a series of workshops and e-learning modules from May 2021 to April 2022 for financial institutions and companies to build capacity in green finance, with support from its industry association partners.

The GFIT comprises representatives from financial institutions, companies, non-governmental organisations and financial industry associations.

Its mandate is to help accelerate the development of green finance through the development of a taxonomy - a system that classifies economic and corporate activity.

It is also responsible for enhancing the environmental risk management practices of financial institutions, improving disclosures and fostering green finance solutions.

Ms Gillian Tan, an assistant managing director at MAS, said: "GFIT's initiatives to enhance climate-related disclosures and strengthen green capabilities will enable financial institutions to effectively develop green solutions and align their portfolios towards facilitating Asia's transition to a low-carbon economy."

The initiatives will also contribute to global efforts to achieve greater consistency and comparability in climate-related disclosures, as well as provide investors and market participants with the necessary information for climate risk analysis and investment decision-making, she added.