Singapore central bank launches ESG registration system for SMEs

June 30, 2023|Written by |Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is developing a digital ESG registration system for small and medium-sized enterprises (SMEs) around the world.

Created in partnership with the United Nations Development Programme (UNDP) and Global Legal Entity Identifier Foundation, the initiative, called Project Savannah, aims to simplify ESG reporting requirements for smaller companies, the central bank announced on 22 June.

Project Savannah will create a common framework of ESG metrics which SMEs can use to meet the UN’s Sustainable Development Goals. The platform will use ESGenome, a digital disclosure portal, to populate ESG metrics for companies. This will simplify the reporting process, the regulator said.

The data will then be available to authorised third parties through the Global LEI System, an identifying system for legal entities. This will allow SMEs to be visible in the global supply chain, a key component of ESG reporting.

The project “will play a significant role in ensuring that [SMEs] are not locked out of sustainable finance and in supporting their green transition,” said Aiaze Mitha, who heads UNDP’s sustainable digital finance program.

Singapore’s central bank also proposed a code of conduct for ESG rating and data providers on 28 June, asking for public input. The proposed code of conduct would establish industry standards and transparency in regard to how ESG providers use methodology, data sources, governance, and how conflicts of interest are managed.

In addition, MAS launched public consultation on its proposed thresholds and criteria for financing the phase-out of coal-fired power plants under the Singapore-Asia taxonomy.

MAS has made strides in recent months to double down on its efforts towards a net-zero transition, including expanding its Finance for Net Zero action plan and launching a green finance taskforce with China.

This page was last updated June 30, 2023

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