From ambition to action
A practical guide to MAS’ transition planning guidelines
For most financial institutions, responding to new transition planning expectations is about building on existing practices, rather than starting from scratch.
In this context, the Monetary Authority of Singapore (MAS) released its transition planning guidelines (TPG) for banks, insurers and asset managers in March 2026, as addenda to the 2020 Environmental Risk Management (ENRM) Guidelines. The TPG represent a further step in MAS’ supervisory approach to climate risk management, sharpening the focus on how financial institutions should plan for, and respond to, the transition to a low carbon economy over a multi-year horizon, and build resilience to climate-related risks.
Our guide focuses on what the TPG mean for financial institutions in practice, what is incremental relative to the existing ENRM Guidelines, and sets out a practical roadmap to help financial institutions move from ambition to credible, executable transition plans.
TPG at a glance
The TPG set out MAS’ expectations for financial institutions to establish a structured transition planning process that manages climate-related risks in a risk-proportionate manner. Building on the ENRM Guidelines, they sharpen expectations in several key areas, including:
Governance and strategy
Transition planning is explicitly positioned within core risk governance, with boards and senior management expected to oversee how climate transition risks and opportunities are reflected in business strategy and risk appetite.
Governance and strategy
Multi-year risk assessment
Financial institutions are expected to assess climate-related risks over multiple time horizons, using scenario analysis where appropriate, and to integrate insights into credit, underwriting and investment decisions.
Multi-year risk assessment
Customer and investee engagement
The TPG call for a structured, risk-proportionate approach to engaging clients and investees on transition planning, with illustrative tools and approaches that financial institutions may deploy.
Customer and investee engagement
Data, methodologies and use of proxies
The TPG elevate expectations around the collection and use of climate-related data to inform risk decisions and account management strategies, including governance over proxies and methodological choices, and the management of data limitations.
Data, methodologies and use of proxies
How should financial institutions prepare?
Financial institutions have until September 2027 to implement the TPG. This guide sets out five practical, mutually reinforcing workstreams to support implementation:
Revisit climate risks and opportunities with a multi-year lens
Refresh existing climate risk and opportunity assessments taking a “multi-year approach”, leveraging scenario analysis and sectoral pathways, and prioritising portfolios, sectors and clients based on exposure and risk.
Clarify climate ambition and strategy
Revisit climate commitments, define their scope and boundaries, and translate them into sector and product-level strategies and risk appetite.
Develop a transition blueprint and embed it
Design a concrete roadmap of actions, milestones and responsibilities across business, risk and finance, covering portfolio strategy, product development, client engagement and integration into core risk processes.
Strengthen governance, data and decision-useful metrics
Enhance board and senior management oversight, build a fit-for-purpose climate data architecture (including governance over proxies), and define a focused set of metrics that link transition risk and progress to management actions.
Prepare for reporting and disclosure
Use transition plans as a strategic engagement tool to explain approach, resilience, opportunities and investments to internal and external stakeholders.
How we can help
Our sustainability and climate change professionals have supported financial institutions extensively on their environmental risk management and transition planning journeys. From baselining to development and implementation of transition plans, we can support you in turning ambition into credible actions.
From ambition to action
A practical guide to MAS’ transition planning guidelines
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Contact us
Sustainability and Climate Change Practice Leader, PwC Singapore
Tel: +65 9817 8213
Bing Yi Lee
Partner, Financial Services Assurance, Sustainability and Climate Change, PwC Singapore
Tel: +65 9782 6395
