MAS Deploys US$1.8 billion For Climate-Related Investments
(10 June 2021 – Singapore) The Monetary Authority of Singapore (MAS) will deploy US$1.8 billion of the official foreign reserves (OFR) to five asset managers for climate-related investments, said MAS managing director Ravi Menon at the launch of its first sustainability report.
The names of these asset managers will not be disclosed. The selected fund managers will establish their Asia Pacific sustainability hubs in Singapore, and launch new ESG thematic funds for the region.
This is part of the US$2 billion Green Investment Programme (GIP) that was set up in 2019. As of May 2021, the OFR stands at US$398 billion.
To build a climate-resilient reserves portfolio, MAS will also exclude from its reserve portfolio those companies most at risk from the economy’s transition towards lower carbon intensity. For example, companies that derive a substantial part of their revenues from thermal coal mining and have no credible transition plan, will be excluded.
"By exercising their shareholder rights through voting, engagement, and escalation, our external managers can influence their investee companies to address climate risks and shift towards more sustainable practices," said Menon.