MAS Guidelines for Financial Institutions on Transition Planning for a Net Zero Economy

The Monetary Authority of Singapore (MAS) has issued consultation papers proposing guidelines for banks, insurers, and asset managers to facilitate the global transition to a net-zero economy. The guidelines outline MAS’ expectations for financial institutions to establish robust transition planning processes, enabling effective climate change mitigation and adaptation measures for their customers and investee companies. MAS emphasizes the importance of engagement rather than divestment, encouraging FIs to work closely with their stakeholders to implement measures that reduce carbon footprint and build resilience to climate change. FIs are expected to take a multi-year approach, consider holistic risks beyond climate-related risks, and promote transparency through meaningful disclosure.



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