A guide for climate-related disclosures and a framework for green trade finance were launched yesterday 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 the convener of the task force.
In addition, the GFIT framework will help banks assess eligible green trade finance transactions.
The task force also issued a White Paper on scaling green finance in the real estate, infrastructure, fund management and transition sectors, MAS said.
The GFIT will launch a series of workshops and e-learning modules from this month to April next year for financial institutions and companies to build capacity in green finance, with support from its industry association partners.
The task force 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.
MAS said the guide on implementing climate-related disclosures sets out best practices that are aligned with the recommendations of the Financial Stability Board's Task Force on Climate-Related Financial Disclosures.
The framework for green trade finance and working capital provides a principles-based approach for banks to assess eligibility of transactions.
It also gives specific guidance on recommended industry certifications for trade finance activities to qualify as green.
Guided by this framework, HSBC and UOB have piloted four green trade finance transactions for renewable energy, recycling, agriculture and farming activities, to support businesses in greening their supply chains, MAS said.
Ovais Subhani
