, and drinking water. demand for [UNK] energy will continue to grow strongly, especially with rapid urbanisation and modernisation. most countries in asia are still heavily dependent on fossil fuels for their energy needs. more than 80 % of southeast asia ’ s current and planned fossil fuel generation assets exceed the carbon budget under the paris agreement. it is not realistic to suddenly replace fossil fuels with renewables. asia cannot move quickly to a european standard of green without curtailing its economic and social development. asia ’ s transition to sustainability has to be progressive yet determined – through ever deeper shades of green. there is considerable scope to make asian cities greener and cleaner – by tapping on energy - [UNK] technologies and renewable energy solutions. asia is also well - positioned to reap the vast potential of renewable energy. large - scale solar farms have already become a common sight in asia. according to the international renewable energy agency, asia is poised to become a world leader in wind energy by 2050. https : / / www. mas. gov. sg / news / speeches / 2020 / harnessing - the - power - of - finance - for - a - sustainable - future 2 / 13 14 / 10 / 2020 “ harnessing the power of finance for a sustainable future ” - keynote speech by mr ravi menon, managing director, mas, at the finan … a progressive transition to a low - carbon economy is consistent with inclusive economic growth. according to the global commission on the economy and climate, bold climate action could generate more than 65 million new low - carbon jobs globally in 2030. renewable energy projects, energy - [UNK] retrofits, and green construction are labour intensive in the short run and a good means of creating jobs. sustainable singapore singapore has much at stake in global [UNK] to mitigate climate risk. we are a tropical island smaller in size than london, with most of the country lying just 15 metres above sea level. if temperatures were to soar or sea levels rise, our very existence could be in question. singapore has always been committed to the idea of sustainability. right from the 1960s, as a newly independent developing country, we pursued sustainable development : economic growth with environmental protection and social inclusion. we embedded greenery in our urban landscape. we preserved a small tropical rainforest right in the middle of the city. we were one of the earliest countries in the world to limit our car population – through quotas and usage charges on roads leading into the city centre. today, our car population is at

speech by mr ravi menon, managing director, mas, at the finan … as for transition risks, it is estimated that up to us $ 20 trillion of assets across the energy, industry and building sectors globally could become stranded by 2050. financial institutions cannot [UNK] to ignore these risks. mas has co - created with the financial industry a set of guidelines on environmental risk management. these guidelines are distinct from those in other jurisdictions in two ways : first, they cover environmental risks beyond climate change – such as pollution, loss of biodiversity, and changes in land use. these risks can interact with climate [UNK] to compound environmental degradation and depress asset values. second, the guidelines extend beyond banks to include insurers and asset managers, and are calibrated to each sector ’ s business activities. the guidelines set out expectations for financial institutions to assess, monitor, mitigate and disclose environmental risks. financial institutions should adopt sound methodologies and tools to identify and assess the environmental risks relevant to them. they should monitor their exposures to geographies and sectors with higher environmental risks, and the carbon intensity of customers and investee companies. they should develop specific risk mitigation policies for sectors posing higher environmental risks and support the transition of riskier customers and investee companies towards sustainable business practices. they should disclose their approach to managing environmental risks and the impact of these risks on their financial performance. disclosure should reference internationally accepted reporting frameworks, such as those by the fsb taskforce on climate - related financial disclosures ( tcfd ). mas will assess environmental risk in our supervision of financial institutions. this will include assessing how financial institutions integrate environmental risk management with their business operations. within the next two years, mas will incorporate climate - related scenarios in our annual stress tests for the financial industry. disclosure of environmental risk applies as much to non - financial corporates. https : / / www. mas. gov. sg / news / speeches / 2020 / harnessing - the - power - of - finance - for - a - sustainable - future 6 / 13 14 / 10 / 2020 “ harnessing the power of finance for a sustainable future ” - keynote speech by mr ravi menon, managing director, mas, at the finan … only then can investors price climate - related risks and opportunities and asset managers construct and manage sustainable portfolios for their clients. the singapore exchange ( sgx ) requires listed companies to produce annual sustainability reports on a comply - or - explain basis. sgx will