Banks expected to take appropriate measures on firms linked to haze-related activities: MAS

Singapore's central bank on Wednesday (Oct 28) reiterated its expectations of banks' management of haze-related environmental risks in relation to their customers.

The Monetary Authority of Singapore (MAS) said it expects banks to identify, assess, manage and monitor material environmental risks arising from their activities and exposures, including risks associated with pollution and deforestation.

Banks here are also expected to take into consideration relevant information released by the National Environment Agency under the Transboundary Haze Pollution Act .

"Where customers may be linked to activities contributing to haze, banks should engage them and obtain sufficient information to understand their role and involvement, including whether adequate measures are in place to prevent, detect and stop fires," MAS said.

And where heightened environmental risks are identified, banks should take appropriate measures to mitigate the risks.

The central bank said such measures may include imposing conditions, reviewing financing terms, limiting further exposures or reassessing the customer relationship.

"Clear breaches of environmental laws would warrant stronger measures, including limiting exposures or exiting the relationship," MAS stated, adding that it supports the local banks' clear stance against burning practices.

All three local banks, DBS, OCBC and UOB, have stated that they uphold a "zero-tolerance policy" towards clients engaging in activities such as deforestation and open burning.

Singapore's leading lender DBS, in a document setting out its approach to responsible financing in 2017, states that its lending relationship with clients in the palm oil sector must include a "zero burning policy".

MAS also explained that while its expectations are already set out in is guidelines on environmental risk management issued in 2020, and further elaborated in the guidelines on transition planning issued in March this year, it has decided to reinforce these supervisory expectations in light of the current haze situation.

Its statement comes after senior Cabinet members met with leaders of companies that are involved, or have related corporate entities that are involved, in industries widely considered to have contributed to haze due to forest fires in Indonesia.

On Tuesday, Singapore and Indonesia also announced that they are looking into establishing a joint task force to hold companies accountable for forest fires which have caused transboundary haze.

Indonesian Foreign Minister Arrmanatha Nasir said that the joint task force will link information sharing, financial intelligence, and cross-border evidence gathering, including asset recovery where possible.

新加坡央行周三（10月28日）重申了其对银行管理与雾霾相关的环境风险（涉及其客户）的期望。

新加坡金融管理局（MAS）表示，希望各银行能够识别、评估、管理和监控其业务活动和风险敞口产生的重大环境风险，包括与污染和森林砍伐相关的风险。

预计这里的银行也会考虑国家环境局根据《跨境烟霾污染法》发布的有关信息。

新加坡金融管理局表示：“如果客户可能与造成雾霾的活动有关，银行应与他们沟通，并获取足够的信息，以了解他们的角色和参与情况，包括是否已采取适当措施来预防、发现和阻止火灾。”

如果发现环境风险较高，银行应采取适当措施降低风险。

央行表示，此类措施可能包括附加条件、审查融资条款、限制进一步的风险敞口或重新评估客户关系。

“明显违反环境法的行为将受到更强有力的措施约束，包括限制风险敞口或终止合作关系，”新加坡金融管理局表示，并补充说，它支持当地银行对焚烧行为的明确立场。

星展银行、华侨银行和大华银行这三家本地银行均表示，他们对参与砍伐森林和露天焚烧等活动的客户采取“零容忍政策”。

新加坡领先的贷款机构星展银行在 2017 年发布的一份文件中阐述了其负责任融资的方法，其中指出，其与棕榈油行业客户的贷款关系必须包含“零燃烧政策”。

新加坡金融管理局还解释说，虽然其期望已在其 2020 年发布的《环境风险管理指南》中列出，并在今年 3 月发布的《过渡规划指南》中进一步阐述，但鉴于目前的雾霾情况，该局决定加强这些监管期望。

此前，内阁高级成员会见了涉足或与涉足森林火灾相关的行业的公司领导人，这些行业被广泛认为是造成印尼森林火灾烟雾的原因之一。

周二，新加坡和印度尼西亚也宣布，他们正在考虑成立一个联合工作组，追究造成跨境烟霾的森林火灾相关公司的责任。

印尼外交部长阿尔马纳塔·纳西尔表示，联合工作组将把信息共享、金融情报和跨境证据收集联系起来，并在可能的情况下追回资产。