Regulators in Asia-Pacific Issue ESG Guidelines

Both the Monetary Authority of Singapore (MAS) and Hong Kong Monetary Authority (HKMA) have increased their focus on ESG by issuing guidelines on how Financial Institutions (FIs) could establish and implement the ESG framework effectively and how ESG risk management practices could be enhanced-

• The MAS has recently published guidelines for banks on Environmental Risk Management, with an 18-month transition period. MAS plans to start engaging key banks on their implementation progress from Q2 of 2021.

• The HKMA also published a white paper last year on Green and Sustainable Banking. The white paper outlined HKMA’s approach to promoting green and sustainable banking and their guiding principles for building climate resilience in the face of the impending impacts of climate change on Hong Kong’s banking industry.

Source: https://www.mas.gov.sg/-/media/MAS/Regulations-and-Financial-Stability/Regulations-Guidance-and-Licensing/Commercial-Banks/Regulations-Guidance-and-Licensing/Guidelines/Guidelines-on-Environmental-Risk---Banks/Guidelines-on-Environmental-Risk-Management-for-Banks.pdf & https://www.hkma.gov.hk/eng/key-functions/banking/banking-regulatory-and-supervisory-regime/green-and-sustainable-banking/