MAS already expects all banks, insurers, and asset managers to make climate-related disclosures from June 2022, in accordance with well-regarded international reporting 3/9  BIS central bankers' speeches  frameworks, such as the TCFD recommendations. Our consultation will focus on how to transition these expectations into legally binding requirements, against a single, internationally aligned standard. A VIBRANT GREEN FINANCE ECOSYSTEM Let me now touch on efforts to develop a vibrant green finance ecosystem that can support Asia’s transition to a low-carbon future. As a promoter of the financial sector, MAS has been working on four areas: shaping the development of green taxonomies; promoting green finance solutions and markets; harnessing technology to enable trusted sustainable finance flows; and building knowledge and capabilities in sustainable finance. MAS is actively involved in international forums that are developing green taxonomies. Consistent definitions of what constitutes green activities are key to facilitating cross-border capital flows towards sustainable outcomes. MAS is a member of the International Platform for Sustainable Finance (IPSF) which is developing a common reference point for definitions of green activities across major existing taxonomies. This will help market participants interpret and use the various taxonomies that exist today. MAS is working with fellow ASEAN regulators to develop an ASEAN taxonomy aligned with international benchmarks while taking account of the regional context. Developing a clear taxonomy for transition activities is especially relevant for Asia. Asia needs to sustain economic and social development while shifting to a lower carbon future.

As a first step, we will disclose the Weighted Average Carbon Intensity (WACI) of our equities portfolio relative to market benchmarks. Carbon intensity measures the carbon emissions per unit of revenue of the company. The WACI is derived from the carbon intensity of revenues of each of the companies in the portfolio, weighted by the relative size of the investments in those companies. MAS’ equities portfolio has a lower carbon intensity than its market benchmarks. As at end-March 2021, the WACI for MAS’ Emerging Markets equities portfolio was 30% lower than its benchmark while the WACI for MAS’ Developed Markets equities portfolio was 3% lower than benchmark. We will continue to monitor MAS’ portfolio WACI over time and seek to understand the impact of our portfolio actions on WACI levels. A SUSTAINABLE ORGANISATION Finally, as a corporate citizen, MAS is accountable for reducing and reporting its own carbon footprint. We aim to build a sustainable organisation and have advanced on two fronts: measuring our carbon footprint; and developing strategies to reduce our footprint. MAS has substantially established its carbon profile across Scope 1, Scope 2 and Scope 3 emissions. Scope 1 emissions, namely from sources controlled or owned by MAS, are negligible. Scope 2 emissions, namely from purchased electricity to power our office premises, have been on a downward trend. Scope 3 emissions, namely from corporate activities such as air travel, currency operations, and waste incineration, account for most of our carbon profile.