IBF and MAS define 12 technical skills and competencies in sustainable finance
Singapore, February 9, 2022… The Institute of Banking and Finance Singapore (IBF) and the Monetary Authority of Singapore (MAS) today defined 12 technical skills and competencies needed by individuals to fulfill various roles in sustainable finance (see the appendix for more details).
2. The Sustainable Finance Technical Skills and Competencies (SF TSC) are part of the IBF Competency Framework for Financial Services, which provides information on occupations and job roles, career paths and training programs for implementation. level and mastery of skills. SF TSCs cover a range of thematic and functional knowledge topics.
- Thematic topics include climate change policy developments, natural capital, green taxonomies, carbon markets and decarbonization strategies.
- Functional knowledge the subjects cover how sustainability is applied in key functions of the financial sector, such as sustainability risk management, sustainability reporting, sustainable investment management and sustainable insurance and reinsurance solutions.
3. Financial institutions and training providers are strongly encouraged to design training programs around SF TSCs. Banks, asset managers and insurers have the opportunity to adopt relevant SF TSCs for their employees and organization. IBF will work closely with industry to organize high quality training programs and integrated training providers whose curriculum is aligned with the TSC SF. Participants who enroll in IBF-accredited training programs can cover up to 90% of training expenses1 under the IBF-Standards Training Scheme grant.
4. The SF TSCs will be revised periodically to reflect changing developments and needs in sustainable finance. Future improvements could include increasing skill standards for specific roles and introducing more SF TSCs for new roles.
5. Mr. Leong Sing Chiong, Deputy Managing Director (Markets and Development) of MAS, said, “We are seeing a strong and growing demand for talent in sustainable finance as Singapore plays a bigger role as a hub for global finance. sustainable finance for the region. The launch of the SF TSCs today is a crucial step in building a pipeline of talent in sustainable finance, and I encourage all financial institutions to use them as a benchmark for achieving excellence in sustainable finance skills. and talent development.
6. Mr. Ng Nam Sin, Managing Director of IBF, said: “It is imperative to develop skills and talents in sustainable finance for the financial services sector and the addition of the 12 skills in sustainable finance will ensure that Financial services professionals have up-to-date skills and knowledge in sustainability. This will greatly support financial institutions as they build their sustainability capabilities to meet the growing needs of Singapore and the region.
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Annex – List of technical skills and competencies in sustainable finance
The 12 TSC SF outline the required knowledge, skills and abilities that an individual should possess and are designed according to three proficiency levels. A brief description of each SF TSC is presented in the table below. More details on the 12 TSC SF can be found in this link .
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Thematic SF TCS |
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CST |
Description of the TSA |
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Taxonomy request |
Analyze and shape the organization’s strategy, policies, practices and relevant business activities in response to major national, regional and global taxonomies that classify green and transitional economic activities. |
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Management of carbon markets and decarbonization strategies |
Lead the organization’s strategy and policies in response to current and projected carbon policy, market developments and decarbonization strategies, and provide support to the organization and customers in their efforts to decarbonize and go clean -zero. |
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Natural capital management |
Develop natural capital market research and lead the organization’s strategies and policies in response to natural capital policy and market developments, to support decision-making and organizational relationships. |
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Climate change management |
Synthesize information on climate change and evolving climate policies to shape the organization’s strategies and policies, products and/or services. |
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Functional SF TSCs |
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CST |
Description of the TSA |
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Impact indicators, measurement and reporting |
Analyze, monitor and report the impact of sustainability actions and lead the organization in defining the mission and impact goals for the organization or clients. |
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Sustainability reports |
Lead the development of the organization’s sustainability reporting and accounting policies and processes in accordance with regulatory requirements and international best practices. |
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Sustainability risk management |
Develop frameworks, strategies and policies to manage sustainability risks, for the organization to minimize and mitigate risk and impact to the organization. |
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Structuring sustainable lending instruments |
Structure key sustainable lending instruments, which include bonds, loans, project and trade finance, derivatives, blended finance, and develop an incentive mechanism to encourage adoption of these instruments. |
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Sustainable Investment Management |
Lead the organization’s sustainable investing strategies and implement sustainable investing concepts and approaches to portfolio management. |
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Development of sustainable management |
Lead the development of the organization’s stewardship strategy, focus areas, policies and practices, and implement stewardship to achieve the organization’s investment and sustainability goals. |
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Sustainable insurance and reinsurance solutions and applications |
Develop and underwrite new and/or existing sustainable insurance and/or reinsurance solutions aligned with international best practices, and help clients improve their sustainability performance over time. |
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Evolution of the sustainability of the non-financial industry |
Synthesize the risks, opportunities and market developments related to the sustainability of non-financial industries, as well as their impact and application to the organization and the financial sector. |
[1] The program funds accredited training in the framework of skills for financial services. More details are available here .