GFIT also announced a framework for green trade finance and published a roadmap to scale green finance in the real estate, infrastructure, fund management and transition sectors.
Singapore’s GFIT (Green Finance Industry Taskforce) has launched several initiatives to accelerate green finance in Singapore through improving disclosures and fostering green solutions.
GFIT, convened by MAS (Monetary Authority of Singapore) and chaired by HSBC Singapore CEO Tony Cripps, is tasked with helping accelerate the development of green finance.
It comprises representatives from FIs, corporates, non-governmental organisations, and industry bodies including the ABS (Association of Banks in Singapore) and IMAS (Investment Management Association of Singapore).
In January 2021, GFIT proposed a for Singapore-based FIs to identify activities that can be considered green or transitioning towards green, and launched a best practices handbook for asset managers, banks, and insurers on implementing MAS’ Guidelines on Environmental Risk Management.
The newly announced initiatives include an implementation guide for climate-related disclosures by FIs, setting out best practices that are aligned with the TCFD recommendations, and outlining specific disclosure practices for each of the banking, insurance and asset management sectors.
The guide will help to enhance the quality of FIs’ climate disclosures, and facilitate more consistent and comparable disclosures across FIs, MAS said.
GFIT has also announced a framework to provide banks with a principles-based approach for assessing eligible green trade finance transactions, and specific guidance on recommended industry certifications for trade finance activities to qualify as green.
HSBC and UOB have already piloted the framework in four green trade finance transactions for renewable energy, recycling, agriculture and farming activities, to support businesses in greening their supply chains.
A new whitepaper has also been published, outlining recommendations and laying out a roadmap to scale green finance in the real estate, infrastructure, fund management and transition sectors.
This includes a green securitisation platform to scale sustainable infrastructure investments in the region, and recommendations for the use of transition bonds and loans in the shipping, oil and gas and automotive sectors to support more sustainable practices.
In its next phase of work, GFIT will partner industry associations, FIs and businesses to develop and implement the recommended proposals.
GFIT also says it will launch a series of workshops and e-learning modules from May 2021 to April 2022 to help FIs and corporates build capacity in green finance, with support from industry association partners.
The programmes aim to strengthen the capabilities of banks, insurers and asset managers in environmental risk management, enhance their environment-related disclosures, deepen knowledge of green finance instruments, and enable FIs and corporates to customise green financing solutions for transition sectors, MAS said.