The Monetary Authority of Singapore (MAS) announced today the first use case of NovA! to help financial institutions (FIs) assess the sustainability performance of Singapore’s real estate sector.
NovA!, part of the National Artificial Intelligence (AI) Programme in Finance, is aimed at helping FIs harness AI to generate insights on financial risk. In the initial phase, the programme will focus on enhancing FIs’ ability to assess companies’ environmental impact and identify emerging environmental risks.
2 FIs would be able to tap on NovA! for their Environmental, Social, Governance (ESG) risk assessment for originating, underwriting and servicing of sustainability linked loans.
The NovA! ESG use case will also reduce the amount of time it takes for FIs to collect, process, and analyse data through the use of natural language processing (NLP) technique to automatically extract relevant information from documents. This will reduce the overall cost of operations for FIs.
3 To support FIs’ sustainability journeys, NovA!’s ESG use case will be integrated with MAS’ Project Greenprint.  Greenprint is a collection of digital data utilities and initiatives aimed at harnessing technology and data to aggregate high quality, consistent and granular sustainability data, to enable a transparent, trusted and efficient ESG ecosystem. Datasets collected via Greenprint will be used to supplement NovA!’s insights-generation capabilities, which will be accessible to Greenprint partners via APIs.
4 Since the announcement of NovA! in November 2021, 16 members have joined the NovA! consortium. The full list of members can be found in the Annex. A core team within the NovA! consortium is leading the development of NovA!’s ESG use case. The core team members and their areas of responsibility are set out....
Source: MAS | Monetary Authority of Singapore