The Monetary Authority of Singapore (MAS) has issued new supervisory guidelines requiring banks, insurers, and asset managers to integrate climate transition planning into their risk management frameworks. The rules expand the regulator’s environmental risk management framework and aim to strengthen how financial institutions assess and manage both physical climate risks and risks linked to the global shift to a low-carbon economy.
The guidelines require financial institutions to incorporate climate considerations into governance, business strategies, and long-term risk assessments, while also engaging clients and investee companies on decarbonisation pathways. MAS has provided separate guidance for banks, insurers, and asset managers reflecting their different business models, with the rules set to take effect in September 2027 after an 18-month transition period.
Reference: Read more