Reply To Singapore Parliamentary Question On Mandatory Climate Disclosure Requirements By Financial Institutions

Date: For Parliament Sitting on 28 November 2022

Name and Constituency of Member of Parliament

Mr Louis Ng Kok Kwang, MP, Nee Soon GRC

Question:

 To ask the Prime Minister whether MAS will take into account the United Nations Sustainable Stock Exchanges’ Model Guidance on Climate Disclosure in addition to the International Sustainability Standards Board’s standards when introducing mandatory disclosure for financial institutions.

Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:

1. The Sustainable Stock Exchanges Initiative’s Model Guidance on Climate Disclosure (“SSE Model Guidance”) provides a template to guide issuers on implementing the recommendations of the Task Force for Climate-related Financial Disclosures (“TCFD”).

2. The draft standards issued by the International Sustainability Standards Board (“ISSB”) build upon the TCFD recommendations and the Sustainability Accounting Standards Board (“SASB”) standards, among others. The ISSB standards are expected to form the global baseline for sustainability disclosures by corporates and financial institutions.  

3. The ISSB is expected to issue its own guidance on how to report against its standards, which will likely supersede the SSE Model Guidance over time. Many jurisdictions expect to shift from existing standards and guidance, such as the TCFD recommendations and SSE Model Guidance, towards the ISSB standards and guidance. 

4. As MAS has stated, it will set out a roadmap for mandatory disclosure requirements by financial institutions based on the ISSB standards.