The Monetary Authority of Singapore (MAS) has issued a directive requiring financial institutions to actively identify and oversee environmental risks associated with their business operations and client exposures. This mandate specifically encompasses issues related to deforestation and pollution. Banks are instructed to utilize data provided by the National Environment Agency under the Transboundary Haze Pollution Act to evaluate their clients. When customers are potentially connected to activities that cause haze, financial institutions must engage them to determine if sufficient fire prevention and mitigation strategies are implemented. If significant environmental risks are detected, banks are expected to take corrective actions, which may involve setting specific conditions for their clients to ensure compliance and risk reduction.
Source : Mothership
Photo : Mothership
