Knowledge Highlights 9 February 2026
MAS publishes guidelines for financial institutions to manage transition and physical risks from climate change
On 5 March 2026, the Monetary Authority of Singapore (“MAS”) issued three sets of Guidelines on Environmental Risk Management - Transition Planning (“TPGs”), setting out the supervisory expectations of MAS for banks, insurers, and asset managers (collectively, “FIs”) to manage the transition and physical risks they and their portfolios face from climate change. The TPGs are an addendum to and build on the existing expectations set out in the Guidelines on Environmental Risk Management issued in 2020.
As with the Guidelines on Environmental Risk Management, separate but substantively aligned TPGs have been developed for banks, insurers, and asset managers, taking into account their differing business models and risk exposures.
The TPGs make a clear distinction between transition planning and a transition plan. Notably, MAS does not require FIs to publish a transition plan, instead focusing the TPGs on the internal processes that underpin transition planning, including governance, risk management, and client engagement. This distinguishes the Singapore framework from regimes that centre on public disclosure of climate commitments.
To read this article, which covers some of the key supervisory expectations set out in the TPGs, click here.
