(6 March 2026 – Singapore) The Monetary Authority of Singapore has released new transition planning guidelines outlining how banks, insurers and asset managers should address climate-related transition and physical risks.
The guidance builds on the regulator’s Environmental Risk Management Guidelines introduced in 2020 and is designed to strengthen how financial institutions identify, assess and manage climate-related exposures within their risk frameworks.
MAS said firms should adopt transition planning approaches that are proportionate to their risk profiles, while updating business models, governance structures and risk management practices to reflect forward-looking climate considerations.
The regulator also emphasised the importance of engagement with clients and investee companies, encouraging institutions to support transition efforts rather than withdrawing credit, insurance coverage or investment indiscriminately. Firms are additionally expected to keep pace with evolving climate data, metrics and methodologies.
Developed following industry consultation and feedback, the guidelines will come into effect in September 2027, with an 18-month transition period provided for implementation.