Singapore issues ESG funds guidelines to reduce 'greenwashing' risks

A view of the Monetary Authority of Singapore's headquarters in Singapore June 28, 2017. REUTERS/Darren WhitesideSINGAPORE, July 28 - Singapore's central bank has issued new disclosure and reporting guidelines for retail ESG funds, including requiring them to provide details on their investment strategy, as regulators globally seek to reduce the risk of "greenwashing".

Singapore's central bank said the new disclosures will need be made on an ongoing basis, and investors will receive annual updates on how well the fund has achieved its ESG focus. The equities and corporate bonds of companies which derive more than 10% of their revenues from thermal coal mining and oil sands activities will be gradually excluded from MAS's portfolio.

"The exclusion will minimise our portfolio exposures to companies with the largest risk of asset stranding," he said.

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