MAS is committed to further reductions in our energy consumption, in line with public sector targets under GreenGov.SG. We aim to achieve this by: upgrading all fluorescent lightings to more energy efficient motion-controlled LED lightings; installing solar panels on the rooftop of MAS Building and Currency House; and adjusting the indoor air-conditioned temperature from 24°C to the energy optimal level of 25°C. We will focus on reducing air travel which typically accounts for close to 50% of our measured emissions. Emissions from air travel for official business has been rising due to MAS’ active and growing participation in international and regional fora. Going forward, we will look for opportunities to reduce air travel in line with new norms of international engagement in a post-pandemic world. Our biggest challenge is to reduce the environmental footprint of currency issuance. We are still collating emissions data on the excluded outsourced currency operations. We estimate they will eventually account for 40–60% of our carbon footprint. We are engaging our currency vendors to reduce their emissions upstream. Some of them have done so through sourcing renewable energy and printing carbon-neutral notes through carbon offsets. Ultimately progress on emissions reduction in currency operations hinges on a reduction in public demand for notes and coins. MAS will continue to promote electronic payments, the use of good-as-new $ notes for Lunar New Year, and e-gifting during festive seasons. If Singaporeans can reduce their use of cash, it will help to reduce the environmental impact of currency operations, and ultimately the carbon footprint of Singapore.

We aim to: reduce risks to the portfolio across different climate scenarios; seize investment opportunities from the transition to a lower carbon future; and support the transition of portfolio companies. MAS has analysed the potential impact of climate change on the OFR over a 20-year horizon. This was done across three plausible climate scenarios that incorporated both physical and transition risk factors. The exercise informed us that climate change will dampen expected returns – especially for 5/9  BIS central bankers' speeches  equities – and will present risks that will need to be managed. For scenarios assuming faster decarbonisation, companies and assets will be exposed to higher transition risks such as the stranding of fossil fuel-related assets. For scenarios assuming slow progress on climate action, there will be greater physical risks due to climate hazards and changes in climatic conditions. We are developing a climate sign-posting toolkit to help us understand the most likely transition pathways. Government policies to manage climate transition will have the greatest and most immediate impact on company earnings and their distributions to investors. Our initial efforts on building a climate-resilient reserves portfolio are therefore focused on equities. MAS is developing a climate risk overlay programme for its equity portfolio. Such an overlay programme will reduce exposures to carbon intensive sectors, such as energy, materials and utilities. But instead of simply avoiding carbon intensive sectors, we will maintain some exposure to companies within these sectors that are likely to make a successful transition.