The Monetary Authority of Singapore (MAS) has issued consultation papers proposing guidelines on net-zero transition planning for financial institutions, including banks, insurers, and asset managers. These guidelines outline MAS' supervisory expectations for financial institutions to have effective transition planning processes, focusing on climate change mitigation and adaptation measures. MAS encourages an engagement approach rather than divestment, with institutions working with customers and portfolio companies on reducing carbon footprints and building climate resilience. The guidelines also emphasize a multi-year approach to transition planning and holistic risk assessment, including considerations of environmental risks beyond climate-related issues. Disclosure of relevant information to stakeholders is another key component.

Source: Carbonherald