London Stock Exchange Group (LSEG) [LSEG:LN] announced on September 1 that it established a sustainable finance innovation unit in Singapore backed by the Monetary Authority of Singapore (MAS), according to the group’s website on the same day. The unit will provide expertise and solutions regarding data science, data engineering, design thinking, and ESG for financial market participants, covering investments in green infrastructure projects, climate risk measurement, convenient ESG disclosures, and else. To achieve the targets, the unit will collaborate with Singapore’s entities, as well as financial institutions, companies, universities, and industry associations worldwide. With the support of the MAS, LSEG aims to facilitate innovation and advanced technology development in Singapore’s fintech ecosystem through the unit.
The Singapore sustainable finance innovation unit is a part of LSEG’s LSEG Labs network set up in London and Singapore. LSEG Labs integrates strategic analysis, technology, data science, and design thinking to help financial market players deal with challenges and issues. By partnering with LSEG, MAS intends to combine global capabilities and explore innovative solutions towards a net-zero, sustainable economy, with the aim to make Singapore a crucial player in the development of sustainable and green finance in Asia and the world. In 2019, MAS released a Green Finance Action Plan, containing six aspects. As part of the action plan, MAS issued the Guidelines on Environmental Risk Management for banks, asset managers, and insurers last December, to enhance financial institutions’ capabilities to solve environmental risks and support the country’s sustainable transition. Apart from the Guidelines, MAS also announced a USD2bn Green Investments Programme, a Green and Sustainability-Linked Loan Grant Scheme (GSLS), and else. In addition, this May, MAS launched the Green Finance Industry Taskforce (GFIT) to improve climate-related disclosures and green finance solutions in Singapore.