Green Finance Industry Taskforce (GFIT) Taxonomy Public Consultation

There is increasing attention from consumers on financial products and services that are labelled as “green”. However, despite this increasing interest in green and sustainable finance, there have been concerns over greenwashing. These concerns may be inhibiting the development of green finance. There has therefore been a move in some markets to create a system of classification or standards that would help financial market participants and their stakeholders communicate through a shared understanding. One such approach is the creation of a taxonomy.

Singapore, as a leading financial centre, can play an active role in advancing the green finance agenda and serve green financing needs in the region. Convened by the Monetary Authority of Singapore, the Green Finance Industry Taskforce (GFIT) is an industry-led initiative to accelerate the development of green finance through four key initiatives: (i) develop a taxonomy (ii) enhance environmental risk management practices of financial institutions (iii) improve disclosures, and (iv) foster green finance solutions. Under the first focus area, the GFIT is exploring the development of a taxonomy for Singapore-based financial institutions, with particular relevance to those active across ASEAN. 

The first consultation paper was released in January 2021, and sought feedback on the broad approach, including the adoption of a novel “traffic light” approach to classification, as well as potential measures of success, and risks to consider.

A second consultation paper is released on 12 May 2022, building on the broad support for the development of the Taxonomy reflected in the feedback received for the first consultation document, as well as key developments in the sustainability space. The second paper expands on the traffic light approach, and adds granularity to the application and thresholds for classification, supported by science and data. 

The GFIT welcomes all feedback on this document by 23 June 2022.

Second GFIT Taxonomy Consultation Paper

Please click here to submit feedback to the second GFIT Taxonomy Consultation Paper (by 23 June 2022)

ABS member banks are requested to submit their responses through the ABS Online Feedback Portal.

Please click here for the MAS Media Release on 12 May 2022

First GFIT Taxonomy Consultation Paper

Please click here for the MAS Media Release on 28 January 2021