MAS Guidelines on Environmental Risk Management for Banks

MAS Guidelines

Published March 5th, 2026

Detected March 14th, 2026

Summary

The Monetary Authority of Singapore (MAS) has issued revised guidelines on environmental risk management for banks, merchant banks, and finance companies. The update includes an addendum on transition planning to address climate change-related risks.

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What changed

The Monetary Authority of Singapore (MAS) has updated its Guidelines on Environmental Risk Management for Banks, merchant banks, and finance companies, with a revised date of March 5, 2026. This update includes an addendum on transition planning, detailing supervisory expectations for managing transition and physical risks arising from climate change. The guidelines cover governance, strategy, risk management, and disclosure of environmental risk information.

Financial institutions to which these guidelines apply must review and implement the enhanced expectations for environmental risk management and transition planning. While a specific compliance deadline is not explicitly stated beyond the effective date of the addendum, entities should integrate these requirements into their risk management frameworks and disclosure practices. Failure to comply may result in supervisory actions from MAS.

What to do next

Review and update environmental risk management frameworks to align with MAS guidelines.
Incorporate transition planning expectations into risk management processes.
Ensure appropriate disclosures regarding environmental risk are made.

Source document (simplified)

Decrease font size Increase font size Print this page Guidelines Last Revised Date: 05 March 2026

Guidelines on Environmental Risk Management for Banks

Guidelines to enhance banks’ resilience to and management of environmental risk.
- Guidelines on Risk Management Practices
- Risk Management
- Environmental Risk
- Transition Planning

Applies to: Finance Company, Full Bank (Branch), Full Bank (Locally Incorporated), Merchant Bank (Branch), Merchant Bank (Locally Incorporated), Wholesale Bank (Branch), Wholesale Bank (Locally Incorporated)

These guidelines set out MAS' expectations on environmental risk management for all banks, merchant banks, and finance companies.

The guidelines cover:

Governance and strategy
Risk management
Disclosure of environmental risk information The addendum on transition planning sets out more detailed supervisory expectations for banks to manage the transition and physicals risks they face from climate change as part of a sound transition planning process..

View Documents

Guidelines on Environmental Risk Management for Banks (Dec 2020) (289.3 KB)
Guidelines on Environmental Risk Management (Banks) - Transition Planning (Mar 2026) (568.6 KB)
Inform insurers of the publication of an addendum on transition planning to the Guidelines on Environmental Risk Management, which sets out more detailed supervisory expectations for insurers to manage the transition and physical risks they face from climate change as part of a sound transition planning process.
These guidelines set out MAS' expectations on environmental risk management for all insurers.
Guidelines to enhance fund management companies’ and real estate investment trust managers’ management of environmental risk.
This consultation sets out MAS’ proposed Guidelines on Transition Planning for all banks, merchant banks, and finance companies. The Guidelines set out the expectation for these financial institutions to have a sound transition planning process to enable effective climate change mitigation and adaptation measures by their customers in the global transition to a net zero economy and the expected physical effects of climate change.

Consultation number: P012-2023 Start date: 18 October 2023 Closing date: 18 December 2023 MAS response date: 05 March 2026
- This consultation sets out MAS’ proposed Guidelines on Transition Planning for all insurers. The Guidelines set out the expectation for these financial institutions to have a sound transition planning process to enable effective climate change mitigation and adaptation measures by their customers, asset managers and investees in the global transition to a net zero economy and the expected physical effects of climate change.

Consultation number: P013-2023 Start date: 18 October 2023 Closing date: 18 December 2023 MAS response date: 05 March 2026
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