Climate X’s Post

Bank for International Settlements – BIS Innovation Hub and Monetary Authority of Singapore (MAS) Develop Blueprint for a Climate Risk Platform for Financial Authorities “As the impact of climate change on the global financial landscape intensifies, the need for adaptive and forward-thinking strategies has never been more urgent. Project Viridis helps equip financial authorities with the insights needed to integrate emerging climate risks into their analysis – and thereby help promote global financial stability,” said Maha El Dimachki, Head of the BIS Innovation Hub Singapore Centre. https://lnkd.in/er-u9CSg #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

🌿 Discover how the financial sector is bolstering its resilience against environmental risks! Dive into the insightful report from the recent Singapore Fintech Festival 2023, where industry leaders, policymakers, and experts discuss the urgent need for action. Explore key takeaways, barriers to progress, and stakeholder roles. Let’s build a sustainable financial sector that safeguards our planet for generations to come. https://lnkd.in/gKGp4Hn5 🌎💚 #Sustainability #Finance #ClimateResilience #EnvironmentalRiskManagement #ElevandiInsights Special thanks to Aymeric Salley, Katharine Cheung, and Alice Kwok for co-developing this insight paper

Hong Kong Monetary Authority Proposes Mandatory Green Rules for Banks The Hong Kong Monetary Authority (HKMA) is planning to make its green taxonomy framework mandatory for banks, aiming to boost sustainable finance. The taxonomy, covering 12 economic activities, helps assess sustainability and provides clear definitions of "green" activities. HKMA is working on expanding the taxonomy to include more sectors. Harmonizing different sustainability taxonomies is crucial to combat greenwashing, and Hong Kong could serve as a testing ground for interoperable standards. The Hong Kong Exchanges and Clearing (HKEX) has also aligned its climate-related disclosures with international standards. While challenges exist in applying these standards to the Hong Kong market, the city's efforts in establishing a robust green taxonomy framework could set a global example for sustainable finance. Read the full article here to find out more: https://lnkd.in/ejqCcze8 International Fintech Business (IFB) can help you enter the fintech industry. Our expertise in financial licensing makes us your ideal partner for you. Whether you want to establish a company with a financial license in a specific region like Hong Kong or buy an existing company, our team is ready to provide tailored solutions. Contact IFB today and let us help you navigate the complexities of the fintech world. For details: [email protected] More info: ifbusiness.uk #IFB #Fintech #Banks #HongKong

🌟  I am excited to share that U-Reg has been awarded the Monetary Authority of Singapore (MAS) Financial Sector Technology and Innovation (FSTI) Innovation Acceleration (IA) grant! 🌟  This grant supports the experimentation, development, and dissemination of cutting-edge technologies in the financial services sector. 🚀 The objective of this initiative is to develop and disseminate an AI-driven ESG reporting equivalence engine, in collaboration with BNP Paribas as the Project Partner of this initiative, to tackle the fragmentation, the standardisation challenges and the lack of harmonization in ESG reporting. This innovative solution will help financial institutions and their clients navigate ESG taxonomies across global standards, regulatory bodies, industries, and exchanges. I want to extend my gratitude to BNP Paribas, and especially Antonina Redko and Shilpa Gulrajani, for their willingness to participate in this project and for their unwavering support. We look forward to working with the BNP Paribas teams involved as we embark on this journey to redefine how institutions interact with their ESG regulatory data.   I would like to also thank Joris Dierckx, CEO and Head of Southeast Asia at BNP Paribas, for his support. Joris stated: “We are happy to grant our support and work with U-Reg on enhancements to the platform. ESG reporting is progressively becoming a must for many companies. Having a tool that uses modern technology to standardise and simplify the reporting process would be a great achievement, and an important step forward for various stakeholders.” By connecting data across standards and driving operational efficiencies, we uphold the 'input once, report to many” principle at the core of the U-Reg platform. This project will also help anchor Equivalence as a Service in the regulatory space, paving the way for more streamlined and efficient regulatory compliance across processes. #Innovation #ESG #Fintech #RegTech #Sustainability #Compliance

Incredible discussion on Climate Transition for banks. Over 200 participants from across Asia joined and it indeed sparked thought-provoking themes. The discussion highlighted the need for a deeper role by DFIs and regulators to support with data, technology, and capital. These are essential elements to foster climate transition actions within banks, especially domestic financial institutions in emerging markets. Notable recommendations emerged from this dynamic exchange that will serve as valuable inputs for auctusESG's forthcoming report on "Financing for Climate Transition – A Roadmap for Banks in Emerging Markets." Enrique Florencio | Mohd Prasad Hanif | Goverdhan Rawat | Jonathan Labrey | Dr. Al-Hamndou Dorsouma | Chris Engstrom | Marga Peeters | Ajith Kumar A Association of Development Finance Institutions of Malaysia (ADFIM) | Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) | NABARD - National Bank for Agriculture and Rural Development | IFRS Foundation | Asian Development Bank (ADB) | Federal Bank #ClimateTransition #BankingPerspective #SustainableFinance #EmergingMarkets #ClimateAction

During my research to write a chapter in a book about Indonesia's Energy Transition, I learnt a lot about Climate and Sustainability topics. My initial skeptical position about Climate-related implementation in banks quickly turned into an alarmed one. Frankly not due to the impact of temperature rise from anthropogenic emission, but due to the speed of the proliferation of standards to be imposed to banks from all sides: by national regulator, accounting body, industry alliances, investors, and even the Bank of International Settlement (Basel), which is considering Pillar 3 disclosure on climate-related financial risk. I have not seen this kind of urgency even when implementing Basel III post-GFC. The long list of institutions and tools have been called out as an alphabet soup of sustainability reporting. The pace has accelerated since 2022, with various institutions racing to publish their frameworks to become "the gold standard". It is hard to keep up, even after reading hundreds of pages and hours of videos that accompany the launch of new framework every other month. Whether the patient likes it or not, the doctor has prescribed the soup and is coming to our door, sooner than later. #climaterisk #climatedisclosure #netzerobanking #transitionplan #portfolioalignment #targetsetting

The Hong Kong Monetary Authority (HKMA) has issued a circilar laying out principles on planning for transition to a net-zero economy for the local capital markets ecosystem and community: 🔷 Under its 2-year plan to review the "greenness assessment framework" to better deal with climate risks, the HKMA has an intention to support banks and local market participants with the transition 🔷 In an environment where numerous market participants and stakeholders have issued guidance and recommendations, including the Basel Committee for Banking Supervisions plan to work with banks on transition planning, HKMA's principles should help guide local authorized institutions in their transition planning. These authorized institutions should: 🔷 Set out objectives aligned with a net-zero transition and as their capacity for transition planning improves they should also set quantitative targets, preferably science based 🔷 The principles also ask institutoins to set up a robust corporate governance framework with climate risks and the transition planning integrated into the framework 🔷 The institutions should initiate appropriate initiatives and actions to achieve their transparent objectives, including ongoing reviews to ensure they stay on track of the latest developments 🔷 The principles ask participating institutions also to engage with their clients, to create a value-chain effect 🔷 Transparency is key and hence institutions are asked to share intelligence to their stakeholders for review A survey by the HKMA will be conducted to assess the status on climate risks and transition planning, expected to be published late this year. More info can be found herehttps://lnkd.in/eaUssMuT and here: https://lnkd.in/eEPGqnXM #esg #transition #climaterisk #transparency #reporting

The global securitisation market is dominated by developed countries.   Sustainability-themed securitisation in emerging markets – except for China – is even more negligible. The graphic below shows the predominance of the G7 countries in the global green asset-backed securities (ABS) market until 2020.  Climate Bonds Initiative But some of the reasons behind this dominance also highlight why we can expect things to change in the future:  - EMDE markets are characterised by illiquid assets, and securitisation offers an effective tool for transforming illiquid assets into liquid ones.    - Securitisation targets banks’ loan portfolios, and EMDEs have established banking systems – even in cases where local capital markets have limited liquidity.  - EMDE assets are perceived as risky. Securitisation transforms individual assets, which can be high-risk on their own, into diversified portfolios that carry a lower investment risk.     MOBILIST’s recent investment in asset-backed securities listed by Bayfront Infrastructure Management in Singapore showcases how this process can work in practice.  Look out for MOBILIST’s upcoming Policy Note on the potential of securitisation and how it can be utilised by both multilateral development banks and commercial banks in EMDEs to mobilise more capital toward sustainable development.  

Get up to speed with the regulatory compliance developments from the Asia Pacific region. Our monthly newsletter summarises key regional updates on the financial services industry. This edition includes details on the MAS launch in Singapore of a digital platform for ESG data collection and analysis called 'Gprnt'. Meanwhile in Japan, the FSA published Draft Partial amendments to the Comprehensive Supervisory Guidelines for Small and Medium-sized Regional Financial Institutions. To read all regulatory updates and enforcement actions across the Asia Pacific region from mid-November to the end of December 2023, please click here. https://lnkd.in/ge3NesC4 To read previous editions of the regulatory updates, please click here. https://lnkd.in/gGNF_799 #complianceasia #regulatory #updates #newsletter #apac #enforcements #developments #knowledge

Where is Asia on the regulatory front in helping create a robust framework for ESG investments? What remains to be the biggest challenge when it comes to increasing ESG investments among private banking clients? Find out all these and more from the region’s top private banks in Citywire Asia's 'ESG in Asia: Weathering the Storm': https://bit.ly/45vi0am #citywire #citywireasia #esg #sustainableinvestment #asia