Guidelines due to take effect in 18 months call for increased engagement with stakeholders, stress testing and risk disclosures.
The Monetary Authority of Singapore (MAS) has released its final guidelines on environmental risk management for asset managers and insurers, following consultation papers issued earlier this year.
Insurers and asset managers will need to increase their level of engagement with stakeholders and investors to identify existing levels of environmental risk in portfolios and investee companies, as well as mapping out how future environmental factors could alter performance.
MAS expects the management and disclosure of environmental risk “to mature as the methodologies for assessing, monitoring and reporting such risk evolves”.
The new framework follows MAS’s Green Finance Action Plan, which was launched late last year. In a keynote speech in October, MAS Managing Director Ravi Menon revealed the regulator would incorporate climate-related scenarios into its annual stress tests for the financial industry within the next two years.
MAS emphasised both insurers and asset managers’ disclosures should … [continues]
Read the full article on Regulation Asia’s sister publication, ESG Investor.