The Monetary Authority of Singapore (MAS) has released three transition planning guidelines outlining supervisory expectations for banks, insurers, and asset managers in managing climate-related transition and physical risks.
MAS said the guidance supplements its Environmental Risk Management Guidelines introduced in 2020 and aims to help financial institutions strengthen their risk assessment and management capabilities.
Under the framework, institutions are expected to adopt transition planning in a manner proportionate to their risk exposure and address climate risks by adapting business models, governance structures, and risk management practices with a forward-looking approach.
MAS also encouraged firms to work closely with customers and investee companies to prevent indiscriminate withdrawal of credit, insurance coverage, or investments, whilst keeping up with evolving data and analytical methodologies.
The guidelines were developed following feedback from an earlier public consultation and industry engagement, and will take effect in September 2027 after an 18-month transition period.
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