The IFRS Foundation plans to set up by the end of this year an International Sustainability Standards Board (ISSB) as a global standard setter. An IFRS work group is already developing a prototype climate reporting standard. The IFRS work group’s recommendations on the prototype will be reviewed by a technical expert group co-chaired by MAS and the US Securities and Exchange Commission, under IOSCO’s Sustainable Finance Taskforce. The expert group will assess if the prototype could be a basis for developing the ISSB’s standards. MAS and SGX will set out roadmaps for mandatory climate-related financial disclosures by financial institutions and listed entities respectively. The roadmap will take a phased approach. A more ambitious timeline can be considered for listed entities that are larger or more exposed to climate risks. Larger financial institutions can similarly be prioritised. These details will be worked out in consultation with the industry in the coming months. SGX will soon consult the industry on making climate-related reporting in line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). SGX already subjects listed entities to annual sustainability reporting on a “comply or explain” basis, but without specifying any particular framework for them to follow. The TCFD recommendations provide a good baseline disclosure framework. They have gained broad acceptance internationally and will be the basis for future ISSB climate reporting standards. MAS will consult the industry later this year on mandatory climate-related disclosures by financial institutions.
MAS is committed to further reductions in our energy consumption, in line with public sector targets under GreenGov.SG. We aim to achieve this by: upgrading all fluorescent lightings to more energy efficient motion-controlled LED lightings; installing solar panels on the rooftop of MAS Building and Currency House; and adjusting the indoor air-conditioned temperature from 24°C to the energy optimal level of 25°C. We will focus on reducing air travel which typically accounts for close to 50% of our measured emissions. Emissions from air travel for official business has been rising due to MAS’ active and growing participation in international and regional fora. Going forward, we will look for opportunities to reduce air travel in line with new norms of international engagement in a post-pandemic world. Our biggest challenge is to reduce the environmental footprint of currency issuance. We are still collating emissions data on the excluded outsourced currency operations. We estimate they will eventually account for 40–60% of our carbon footprint. We are engaging our currency vendors to reduce their emissions upstream. Some of them have done so through sourcing renewable energy and printing carbon-neutral notes through carbon offsets. Ultimately progress on emissions reduction in currency operations hinges on a reduction in public demand for notes and coins. MAS will continue to promote electronic payments, the use of good-as-new $ notes for Lunar New Year, and e-gifting during festive seasons. If Singaporeans can reduce their use of cash, it will help to reduce the environmental impact of currency operations, and ultimately the carbon footprint of Singapore.