The Monetary Authority of Singapore (MAS) recently announced that they will be investing S$2.38 billion into climate-related investment opportunities so that the country has a smooth transition in becoming a low carbon economy. The funds will be allocated to five asset managers under its Green Investments Programme (GIP) who will set up their Asia-Pacific sustainability hubs in Singapore and help guide the firms towards a more sustainable and greener outcome.
These funds will also help manage new equity and fixed income, which will be focused on climate change and the environment. The announcement was made by managing director Ravi Menon while launching the central bank’s first sustainability report.
Menon said in a statement, “The GIP will help to enhance the climate resilience of the official foreign reserves, attract sustainability-focused asset managers to Singapore and catalyse funding towards environmentally sustainable projects in Asia and beyond.”
The five appointed asset managers will establish their regional sustainability hubs in the country itself and will also launch new thematic funds focused on environmental, social, and corporate governance (ESG). They will also focus on building green finance with the help of in-house and external training programmes in order to generate in-depth research on ESG and green financial technology effort.
MAS will also consult with the industry sometime later this year in order to discuss the compulsory climate-related disclosures by the financial bodies while focusing on transitioning these expectations into legally binding requirements, according to the global standards.