SINGAPORE: The financial sector is taking incremental steps to turn their portfolios green and play their part in the fight against climate change, amid greater concern and awareness over its impact on the environment and economy.
"Singapore being a key financial centre, it’s well positioned to plug some of these massive financing gap in more sustainable ways," said Mr Willie Tanoto, an analyst at Fitch Ratings Singapore."The Singapore banks have recognised this early and they are coming out of the gates running," he added. "They are holistically looking at climate risks and environmental change aspects, and then incorporating the risk management aspects. And crucially, they are realising the opportunities that exist in funding the green economy," he added.Still, analysts say the amount of sustainability-linked loans issued by the banks pales in comparison to their overall loan book.
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