Commenting on Market Forces’ complaint lodged with the Singapore Exchange against OCBC on disclosure gaps in carbon-intensive assets, SMU Professor of Finance Liang Hao said that a tiered approach of deep disclosures and targets for sectors with major exposure, a portfolio-wide risk screening, and supplementary explanations for specific exposures or policy interpretations would help achieve that balance of transparency. Prof Liang mentioned that this is especially for cases where potential exposure sits on the edge of an existing policy definition, such as coal exposure arising via an industrial client’s captive power rather than a standalone power producer. He added that the key point is not necessarily to list every client, but to ensure investors can understand the policy boundary, methodology and any material blind spots.
