From reality to ambition

A review of current progress and the journey ahead

Environmental risk management for banks and asset managers

In the third quarter of 2023, PwC Singapore conducted a survey across 50 financial institutions with operations in Singapore, comprising 26 asset managers and 24 banks of various sizes and profiles, to reflect on the industry's progress in operationalising the MAS Environmental Risk Management (ENRM) Guidelines since they came into effect in June 2022. Overall, good progress has been made across the board and while many observations are consistent with those highlighted in the Monetary Authority of Singapore (MAS) information papers published in May 2022, this study further explores nuances amongst smaller financial institutions, including foreign-headquartered banks and asset managers placing reliance on group policies and capabilities, and shines a spotlight on upcoming topical areas such as transition planning, International Sustainability Standards Board (ISSB) and Taskforce on Nature-related Financial Disclosures (TNFD).

Key takeaways

Implementation progress at a glance​

Implementation maturity by banks and asset managers in Singapore:

Implementation maturity by banks and asset managers in Singapore

Survey methodology

In Q3 2023, PwC Singapore conducted an industry survey across the banking and asset management sectors. The survey reflects on where our local financial institutions are at in terms of operationalising the MAS Environmental Risk Management (ENRM) Guidelines and assesses plans for upcoming topical areas including transition planning, Task Force Nature-Related Finance Disclosures (TNFD) and International Sustainability Standards Board (ISSB) for the banking and asset management sectors.​

The survey was conducted across 50 financial institutions (FIs) with operations in Singapore. The 50 respondents were split between 26 asset managers and 24 banks.

Breakdown of respondent profile

Banks
Created with Highcharts 9.2.2Bank size by no. of employees in Singapore25%33%42%Large(>500)Medium(100-500)Small(<100)Highcharts.com
Created with Highcharts 9.2.2Headquarter location29%42%25%4%ASEANAsia (excl. ASEAN)EuropeOthersHighcharts.com
Created with Highcharts 9.2.2Type of banking services83%54%29%25%Wholesale bankingPrivate bankingRetail bankingInvestment banking0102030405060708090Highcharts.com
Asset managers
Created with Highcharts 9.2.2No. of employees in Singapore31%15%35%19%Over 5021 - 5010 - 2010 or lessHighcharts.com
Created with Highcharts 9.2.2Location and presence62%19%19%GlobalRegional (APAC)Local (Singapore)Highcharts.com
Created with Highcharts 9.2.2Investment strategies33%33%17%8%8%TraditionalPERA (includes real estate, private equity, private debt andinfrastructure)Multi-strategyVCHedge funds010203040Highcharts.com

A look back at our closed-door discussion

PwC Singapore held a closed-door discussion where we shared key insights and results from the recent industry survey and around the topic of transition planning for financial institutions. Followed by an industry group roundtable to discuss key environmental, social and governance (ESG) topics impacting asset managers and banks.

Contact us

Fang Eu-Lin

Sustainability and Climate Change Practice Leader, PwC Singapore

+65 9817 8213

Email

Bing Yi Lee

Partner, ESG and Financial Services, PwC Singapore

+65 9782 6395

Email

Christina Mason

Partner, Asset and Wealth Management ESG, PwC Singapore

+65 9018 1559

Email

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