As with any industry where advancement and innovation are outpacing regulation, the complex landscape can be difficult for businesses to navigate their operations. From adapting to new realities in emerging industries such as Web3, evolving regulations, compliance and commitment to environmental, social, and governance (ESG), it is of great importance for businesses to keep updated on key trends and developments in order to remain internationally competitive.
Feel free to explore the topics below and we welcome any opportunity to discuss more with our respective PwC representatives.
Australia has recently released new legislation requiring climate-related disclosures in line with the ISSB standards, including disclosures on climate risks, opportunities, and greenhouse gas emissions across the value chain. To learn more about Australia's new climate legislation, please check out PwC's recent publication titled "Sustainability Reporting Legislation Passed by the Senate: Mandatory Sustainability Reporting Begins.
GRI and TNFD working together ‘to prevent the need for double reporting
GRI have developed a guidance document and correspondence table to help reporters globally align with the TNFD recommendations and aid TNFD adopters in their sustainability reporting according to GRI Standard. This resource enables reporters to seamlessly integrate the TNFD recommendations, allowing for a simplified, single-source reporting.
Australia Senate Passes New Mandatory Climate Disclosure Law
The new proposed legislation would introduce climate-related reporting requirements broadly in line with the ISSB, including disclosures on climate-related risks and opportunities, as well as greenhouse gas emissions across the value chain. Reporting requirements for the first wave of companies commence in 2025 and would begin with all public companies and large proprietary companies that meet specific size thresholds, starting with companies with over 500 employees, revenues over $500 million or assets over $1 billion, as well as asset owners with more than $5 billion in assets.
UK to Introduce Law to Regulate ESG Ratings Providers
The UK government is planning to introduce a law to regulate ESG ratings providers. This comes amid concerns about the lack of transparency in the ESG ratings industry. The new law would place ESG ratings providers under the supervision of the Financial Conduct Authority (FCA), who would be responsible for ensuring that ESG ratings are accurate and reliable. The regulation also aim to “boost growth, help deliver a cleaner economy and ensure that companies in critical sectors like defence are not penalised by opaque ratings,” and that it would align with IOSCO’s recommendations.
BlackRock, Temasek Decarbonisation Fund Leads $31 Million Capital Raise for AI-Powered Factory Optimisation Platform Guidewheel
According to Guidewheel, the new capital will be used to help scale its "FactoryOps" platform, which uses sensors clipped onto the power supply of factory floor machinery or equipment, which sends data for real-time analysis, providing key metrics and visuals to users’ devices, allowing users to make data-driven decisions and receive real-time alerts to identify and address machine-level issues and trends and improve efficiency.
Stewart Investors launches APAC and Japan sustainability fund
Stewart Investors aims to achieve long-term capital growth by investing in a portfolio of 30-60 companies in APAC and Japan that are helping to provide a more sustainable future. In addition, investors can gain exposure to these high-quality Japanese companies far earlier in their Asia growth journeys and access a greater pool of domestic companies with attractive growth opportunities.
CapitaLand Ascott Trust (CLAS) bags S$165 million OCBC sustainability-linked loan
Dubbed the OCBC 1.5°C Loan, the financing solution grants CLAS interest rate reductions upon meeting agreed annual greenhouse gas emission targets validated by the Science Based Targets initiative (SBTi). The article also mentioned that Clas is the first lodging trust to secure such a loan from OCBC, with its proceeds utilised by the asset manager for general corporate purposes.
Green data centres, energy transition among most promising growth areas in sustainable financing: UOB
According to UOB, it has seen robust growth in demand over the past few years for its sustainable banking solutions like sustainable trade facilities, which grew to S$7 billion in the first half of FY2024 translating into a CAGR of 177% between FY2021 and FY2024. Separately, the bank also highlighted the challenges SMEs face when attempting to take the necessary actions to implement sustainable practices like having insufficient knowledge to identify and execute the right initiatives, increased costs that could potentially impact profits and revenues, as well as a lack of proper infrastructure for renewable energy.
Tokio Marine Kiln unveils political risk coverage with Kita
Tokio Marine Kiln (TMK) is collaborating with Kita, a carbon credit insurance firm, to provide political risk insurance for developers of, and investors in, carbon credits projects. TMK said in a press release that this makes the insurer amongst the first to offer this type of policy in the Lloyd’s market.
Swiss Re Corporate Solutions supports insurance for long-term carbon credits
Swiss Re Corporate Solutions and Goodcarbon, a Berlin-based climate start-up, have launched an insurance product to support the flow of capital into nature-based projects that generate carbon credits.
Microsoft Unveils New Multi-Framework ESG Reporting Solution
The Global Reporting Initiative (GRI) and the Taskforce on Nature-related Financial Disclosures (TNFD) have unveiled an interoperability mapping resource aimed at aligning TNFD Disclosure Recommendations with GRI Standards. One significant aspect of this mapping is the consistent use of nature-related concepts and definitions, such as the five drivers of biodiversity loss defined by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).
MIT’s New Tool Set to Cut Pavement Emissions by 65% by 2050
MIT researchers at the Concrete Sustainability Hub (CSHub) have introduced a groundbreaking tool that addresses the environmental challenges posed by the U.S. road infrastructure. This new framework simplifies the life-cycle assessment (LCA) of pavements, making it accessible to a broad range of stakeholders while significantly reducing the data collection burden.
Carbon credits a ‘catalyst’ for climate action, not just a method to offset emissions: ecosecurities chief
This article discusses the perspective of on the role of carbon credits in combating climate change. Rather than viewing carbon credits merely as a tool for offsetting emissions, the chief argues that they should be seen as a catalyst for broader climate action. The emphasis is on leveraging carbon credits to fund and drive sustainable projects that contribute to significant reductions in greenhouse gas emissions. This approach aims to ensure that carbon credits support genuine environmental progress rather than just serving as a means for companies to compensate for their emissions.
Guest Post – Ensuring and Assuring ESG Data: The Importance of Integration
This article highlights the critical importance of integrating and assuring ESG (Environmental, Social, and Governance) data for effective decision-making and reporting. It emphasizes that reliable ESG data is essential for businesses to meet regulatory requirements, gain investor trust, and achieve sustainable performance. The piece outlines that integrating ESG data across all business functions and ensuring its accuracy through robust assurance processes are vital steps. This integration not only enhances transparency and accountability but also supports the overall strategic goals of an organization by embedding sustainability into its core operations.
On 22 August 2024, the legislation to enact Australia’s mandatory climate-related financial disclosure regime was passed by the Senate, which will be effective for financial years beginning on or after 1 January 2025.
Our survey of 4,700 CEOs found that companies taking more action on climate-related opportunities and risks also have better financial performance.
As the financial services sector continues its path of transformation, new technologies and challenges are introduced. Quantum computing can be seen as a double-edged sword: An asset when used correctly, and a threat when it falls into malicious hands. Artificial intelligence is being implemented at all levels, improving customer experiences and streamlining back office operations.
S’pore adds another $300m in investment to develop quantum computers, talent pool
Singapore’s quest to establish itself as a quantum powerhouse has received a nearly $300 million investment top-up over the next five years as a global race to deploy next-generation computers heats up. The sum will be spent on studies, grooming 100 local experts each from the PhD and master’s levels, and offering grants to research efforts to build quantum computers and equipment locally.
Finance 4.0: How Quantum Computing Will Transform Financial Services
As we step into Finance 4.0 in the third decade of the 21st century, the landscape will undergo another profound transformation in an even shorter time with the integration of cutting-edge technologies such as blockchain, AI and, notably, the emerging force of quantum computing. The “quantum leap,” as offered by quantum computing with its unparalleled computational power and ability to handle complex algorithms, promises to revolutionize financial services, enabling exponentially faster processing, more accurate predictions and enhanced security.
How Quantum Technology Empowers Banking and Finance Giants
Quantum computing could allow sophisticated calculations to be performed in a fraction of the time it currently takes or process financial models too complex for today’s technology. It has the potential for optimizing investment portfolios by finding arbitrage opportunities faster and calculating multiple variables simultaneously. The technology could power machine learning models for credit scoring and risk analysis using ever larger datasets.
Singapore issues advisory for FIs to mitigate quantum computing risks
Quantum computers that harness the laws of quantum mechanics have the potential to solve certain mathematical problems exponentially faster than traditional computers. Yet their potential to break some of the commonly used encryption and digital signature algorithms poses a major cybersecurity concern.
How Generative AI Will Change Jobs In Financial Services
Generative AI tools will streamline transaction processing by automating many of the routine tasks such as data entry, validation and reconciliation. As GenAI systems become more powerful and accurate, this will mean banks and other financial institutions can offer faster, more reliable and perhaps even cheaper services to their clients.
How AI is Paving the Way for a New Era in Financial Services
AI text-based trading platform, integrated with messaging apps, is revolutionizing DeFi by simplifying financial actions into text commands. AI-powered tools are redefining financial advising, helping advisors offer personalized advice and prioritize client outreach, signifying a strategic shift towards data-driven, personalized service. AI-driven chatbots can deliver instant, efficient customer support, while AI algorithms improve fraud detection by analyzing transactional data, enhancing security and customer trust in financial institutions.
Seizing the Billion-Dollar Opportunity of Generative AI in Financial Services
In an era where technology and innovation are pivotal to competitive advantage, the financial services industry stands on the cusp of a transformative revolution, primarily driven by the advent and integration of generative AI technologies. McKinsey Global Institute predicts that generative AI could add an annual value of US$2.6 trillion to US$4.4 trillion globally across various industries. Specifically, the banking sector could see an annual boost of US$200 billion to US$340 billion, representing 9% to 15% of operating profits.
AI’s «Black Box» Dilemma Presents Challenges to Financial Sector
In an industry where transparency is vital, AI raises critical legal questions on whether financial institutions can trust the new technology. While the use of artificial intelligence in the financial services industry is vast and varied, its opacity, referred to as the «Black Box» dilemma, presents significant challenges to the industry where transparency is paramount.
How the metaverse is advancing virtual payments across industries
New digital online and mobile technology allows consumers to browse, buy and even test products in immersive, personalised digital environments, offering a blend of familiarity from physical shopping and innovative new experiences. To thrive in the metaverse, ecommerce strategies must prioritise real-time efficiency, just as no one enjoys waiting in long lines at a physical store. Fast and secure virtual payments will be crucial to ensuring a seamless shopping experience.
Roblox, Shopify partner to sell physical products in the metaverse
As Roblox looks to tie its platform to revenue opportunities, the company has partnered with Shopify as its first commerce integration partner. With the integration, developers, creators and brands who already use Shopify will be able to sell physical items like clothing and accessories within Roblox games without making the customer leave the Roblox platform.
Metaverse interoperability is essential. How will regulation play a part?
Interoperability is not limited to design teams; global governance efforts have brought interoperability squarely into the crosshairs of regulatory compliance. As the European Commission (EC) takes on interoperability via the Digital Markets Act (DMA), metaverse development is poised to be a test case in innovating under anticipatory governance, with major implications for the future of digital identity, communications and commerce.
Metaverse in banking - How is the technology transforming the future of banks
The metaverse can be a platform which banks use to reconnect with their customers in a new space and build stronger personalised relationships.
Potentially the key to the next generation of true artificial intelligence, neuromorphic computing could revolutionize business.
What is an AI hallucination, and how can you prevent them? Learn how they are produced and strategies for reducing them when using generative AI.
The dawn of quantum computing could lead to a new era of cybersecurity challenges. Quantum cryptography is an emerging way to respond.
Businesses that prioritize generative AI use cases can maximize their value capture, speed, and efficiency.
Bitcoin's rally to $64,000 has fueled interest in altcoins like AVAX, SUI, TAO, and AAVE. Regulation remains a significant factor in the market, as major exchanges have secured licenses from MAS. At the recent Token2049 event, well-known blockchain leader Vitalik Buterin discussed the challenges of his “network states” concept at a conference in Singapore. The ongoing U.S. election continues to impact the market, with people questioning the Fed's recent rate cut.
OKX Singapore gets major payment institution licence from MAS; taps former Grab executive as CEO
The Singapore branch of crypto exchange OKX has received a major payment institution (MPI) licence from the Monetary Authority of Singapore (MAS). The licence will allow OKX Singapore to offer digital payment token and cross-border money transfer services, including spot trading of cryptocurrencies for customers in Singapore. Gracie Lin, former managing director of Grab’s regional strategy and economics team, has been appointed the chief executive of OKX Singapore. In her new role, Lin will oversee the company’s strategic initiatives, including developing permitted digital payment token products and services that meet the needs of local customers.
Pavel Durov breaks silence for first time since arrest
Telegram founder Pavel Durov has finally broken his silence in the first message sent to the public since his high-profile arrest in France in August. The tech entrepreneur expressed surprise that French authorities arrested him, citing the legal representative Telegram has in France who handles all regulatory requests and inquiries.
Visa and Santander Selected by Brazil’s Central Bank for a Second Phase of CBDC Pilot
The Brazilian central bank will oversee 11 projects while the local Securities and Exchange Commission will supervise two. Visa was selected to optimize the foreign exchange market, while Santander plans to work on a project involving automobile operations.
Australia’s central bank launches 3-year program for wholesale CBDC
The Reserve Bank of Australia (RBA) says it won’t be pursuing a retail CBDC anytime soon, but instead, it will focus its efforts on launching a wholesale CBDC. In a Sept. 18 speech at the Intersekt Fintech Conference in Melbourne, RBA Assistant Governor Brad Jones presented the Australian central bank’s three-year roadmap, which focuses largely on the development of a wholesale CBDC.
Nansen Buys StakeWithUs, Expanding Beyond Data Provision Into Crypto Investment
Nansen bought StakeWithUs to add token staking in its first foray outside the provision of data for cryptocurrency traders. The purchase of the platform backed by the Singapore government's SGinnovate program cost more than $1 million.
DBS bank launches Bitcoin options for institutional investors: a revolution for the crypto-financial sector
In Q4 2024, the bank DBS will offer over-the-counter (OTC) options trading on Bitcoin and crypto to institutional clients. With the increase in demand for advanced financial instruments related to cryptocurrencies, DBS becomes the first major Asian bank to respond to this request, offering customized options for accredited investors.
Ex-OpenAI chief scientist raises $1B for startup with only 10 employees
The company, Safe Superintelligence Inc. (SSI), announced the funding in a Sept. 4 update on its website. Per SSI, it raised $1 billion from NFDG, a16z, Sequoia, DST Global, and SV Angel. SSI’s focus, according to its website, is to build an AI model with more intelligence than humans in a safe manner.
The Funding: Crypto VCs on a fundraising spree
Crypto VCs have raised over $2.2 billion in new capital through closed funds this year as of August, according to PitchBook data. In the last few weeks alone, at least half a dozen VCs have collectively raised over $500 million.
Coinbase’s cbBTC wrapped Bitcoin coming to Solana — Breakpoint 2024
Coinbase’s country director for Singapore, Hassan Ahmed, recently announced plans to bring Coinbase’s new “cbBTC” — a wrapped Bitcoin asset — to the Solana network at the Breakpoint 2024 event.
Stablecoin Issuers Now 18th Largest Holder of US Treasuries, Says Bernstein
According to a new report by Bernstein, the total circulation of stablecoins has reached an all-time high of $170 billion, following a dip in 2023. The report describes the dollar-pegged coins as "systemically important" and notes their role in providing USD savings access to international users, helping to spread digital dollars beyond the U.S.
US lawmakers divided in first Congressional hearing on DeFi
The House Financial Services Committee’s Sept. 10 hearing — “Decoding DeFi: Breaking Down the Future of Decentralized Finance” — aimed to explore emerging topics like tokenization and how blockchains can be used in finance. The nearly two-and-a-half-hour-long hearing highlighted the disunity between Republican and Democratic lawmakers over the technology.
The future of crypto regulation: What is FIT 21?
FIT 21, a legislative plan to clarify the role of different regulatory agencies in the oversight of crypto industry, may have a difficult path to passage, but is details are worth considering.
Ethereum then and now: A 10-year look back
Ethereum (ETH), launched in 2015, aimed to be a universal blockchain but instead has seen an explosion in the number of cryptocurrencies, totaling over 2.5 million by 2024. This article illustrates the history and important data points for Ethereum. Initially envisioned as "one chain to rule them all," Ethereum facilitated the creation of numerous tokens, leading to a diverse and proliferated blockchain ecosystem.
Kamala Harris finally breaks silence on crypto: Report
Kamala Harris made her first public statement about crypto amid her campaign for the United States presidency — vowing to encourage investment in artificial intelligence and digital assets during a Wall Street fundraiser.
Introducing our Financial Services Regulatory Risk and Compliance Digest, which focuses on providing you with an update on key regulatory changes in the financial services industry in Singapore. We hope this summary will help you to keep abreast of these emerging themes, and we welcome any opportunity to discuss these with you.
