The Monetary Authority of Singapore (MAS) has reinforced supervisory expectations for banks to identify, assess, manage and monitor material environmental risks, including pollution and deforestation, with particular attention to customers potentially contributing to haze. The expectations are set out in its 2020 environmental risk management guidelines and were further elaborated in transition planning guidelines issued in March 2026. Banks should consider relevant information released by the National Environment Agency under the Transboundary Haze Pollution Act. They should engage customers potentially linked to haze and obtain sufficient information to understand their involvement, including whether adequate measures exist to prevent, detect and stop fires. Where environmental risks are heightened, mitigation may include imposing conditions, reviewing financing terms, limiting further exposures or reassessing customer relationships. Clear breaches of environmental laws warrant stronger measures, including limiting exposures or exiting the relationship.
Monetary Authority of Singapore reinforces expectations for banks to address environmental risks linked to haze
The Monetary Authority of Singapore has reinforced existing environmental risk expectations for banks dealing with customers potentially linked to haze. Banks should consider National Environment Agency information and assess customers’ involvement and measures to prevent, detect and stop fires. Heightened risks call for mitigation, while clear environmental law breaches warrant stronger action, including exposure limits or exiting the relationship.