As businesses emerge from COVID with a significant amount of corporate debt, the landscape in the financial markets has also evolved: The focus on ESG issues has intensified. We have seen institutional investors demand more in these areas, in terms of both disclosures and concrete targets, from banks and funds.

Meanwhile, emerging regulations and reforms

On February 10, 2021, the primary global loan market trade associations—the Loan Syndication and Trading Association (LSTA), the Loan Market Association and the Asia Pacific Loan Market Association—released updated Green Loan Principles (GLP) and related Guidance.

The changes include a requirement that borrowers identify and manage potentially material social risks

On January 28, 2021, Singapore’s Green Finance Industry Taskforce (GFIT) launched a consultation on a proposed taxonomy (the “Taxonomy“) for financial institutions to identify green and transitional activities. The Taxonomy is intended to provide a common framework for classification upon which financial products and services can be built and combat greenwashing by setting out definitive criteria for greenness in Singapore.

The Taxonomy consultation builds upon Singapore’s exemplary efforts to regulate and develop its green finance markets, including the Monetary Authority of Singapore’s recently issued Environmental Risk Guidelines for asset managers, banks and insurers, which we discuss in our Legal Update at MayerBrown.com.

In this Blog Post, we discuss the Taxonomy and steps that other jurisdictions in Asia have taken to implement their own green taxonomies.Continue Reading Singapore Consults on Green Taxonomy for Financial Institutions