Following the Monetary Authority of Singapore's (MAS)
announcement in June this year that it would be setting supervisory
expectations to steer financial institutions' (FIs) transition
planning processes to facilitate credible decarbonisation efforts
by their clients, MAS issued on 18 October, a set of consultation
papers, proposing guidelines on transition planning
("TPG") for FIs to enable the global transition to a net
zero economy. The consultation closes on 18 December 2023. This
update provides a brief overview of the proposed TPG.
Introduction
The proposed TPG describes transition planning as the internal
strategic planning and risk management processes undertaken to
prepare for both risks and potential changes in business models
associated with the transition. They supplement its 2020 guidelines
for environmental risk management by FIs and are the latest
initiative by MAS under its Finance for Net Zero (FiNZ) Action
Plan, which expands the scope of its
