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Singapore to Curb Greenwashing With Stress Tests, Technology

  • MAS to assess local banks on climate-change risks next year
  • Menon says mandatory disclosure will extend to mutual funds
Bloomberg business news
WATCH: Monetary Authority of Singapore’s Menon says banks will have to go through so-called stress tests while making regulatory disclosures in line with G-20 taskforce recommendations. Source: Bloomberg
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Singapore’s financial watchdog is turning to regulation and technology to tackle so-called “greenwashing,” which it considers the weakest link in the push to expanding sustainable finance.

Banks in Singapore will have to undergo stress tests from next year while making regulatory disclosures to ensure they’re managing risks related to climate change and other environmental issues, Ravi Menon, managing director of the Monetary Authority of Singapore, said in an interview. Data verification using technology that can attest to the provenance of green products will also be required, he added.