The Hong Kong Monetary Authority (HKMA) has provided a set of high-level principles to guide banks in their transition to a net-zero economy, with the aim of ensuring safety and stability throughout the process. The HKMA has been actively integrating climate risk into its banking supervision activities and plans to review assessment frameworks to encompass banks’ climate risk management and transition considerations. These principles include setting clear objectives and targets aligned with the Paris Agreement and incorporating transition considerations into internal processes and business strategies. AIs are encouraged to devise appropriate initiatives and actions, engage with clients to support their transition strategies, regularly review and update their plans, and enhance transparency in their transition planning processes. The HKMA will continue to engage with the industry, conduct a survey on AIs’ transition planning practices, and consider the benefits of such planning efforts in its supervisory review process.