MAS Guidelines For Financial Institutions On Transition Planning For A Net Zero Economy

The Monetary Authority of Singapore ("MAS") recently published a series of Consultation Papers relating to a proposed set of Guidelines on Transition Planning, which are intended to apply to various different types of financial institutions such as banks, asset managers who have discretionary authority over the portfolios that they are managing, insurers (together, the "FIs"). The proposed guidelines are intended to supplement the Guidelines on Environmental Risk Management previously issued by the MAS on 18 December 2020.

The MAS intends for the proposed guidelines to facilitate the FI's transition planning processes as they build climate resilience and enable robust climate mitigation and adaptation measures by their customers. Transition planning refers to the internal strategic planning and risk management processes undertaken to prepare for both risks and potential changes in business models associated with the transition. As such FIs play a key role in