The forthcoming guidelines will set supervisory expectations to steer financial institutions’ transition planning processes to facilitate decarbonisation efforts by their clients.
By Paul A. Davies, Farhana Sharmeen, Michael D. Green, and Shi Cheng Chong
On 8 June 2023, the Monetary Authority of Singapore (MAS) announced that it will set guidelines to steer financial institutions’ transition planning processes to facilitate, in turn, their clients’ credible decarbonisation efforts.
The guidelines will cover financial institutions’ governance frameworks and client engagement processes in order to manage climate-related financial risks and enable transition towards net zero.