Climate change is a systemic risk that threatens to inflict heavy costs for the financial sector if no action is taken. Banks and investors, with the right frameworks and guiding principles, have the unique potential to mobilise capital for positive climate action.
In 2020, the Singapore government announced its ambition to make sustainable finance a defining feature of Singapore’s role as an international financial hub. Following this commitment, Singapore’s financial sector can expect an emerging slew of opportunities and regulatory risks, which aim to incentivise more climate-conscious and impact-driven investments. Campaigning pressure against continued financial support for the fossil fuel sector, in particular, is now becoming a concern echoed by investors.