The Supervision of Financial Institutions' Climate-Related Transition Planning

Year Published

2025

Contributing Organizations

International Monetary Fund (IMF)

Global Affairs Canada (GAC)

Toronto Centre

The Swedish International Development Cooperation Agency (Sida)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Transition Plans

Target Audience

All

Relevant Geography

Global

Resource Description

This report provides guidance for supervisors on assessing financial institutions’ climate-related transition plans. It outlines supervisory considerations and offers a structured approach to evaluating credibility and implementation.

Why This Matters

In the absence of common, international standards, this resource helps supervisors assess whether transition plans are credible, practical, and aligned with broader financial and environmental goals.

Key Insights

Distinguishes between two types of transition plans: (1) Plans which involve systematic changes to business activities in response to heightened inherent risks resulting from climate-related changes, and (2) Plans which aim actively to reduce the GHG emissions of financial institutions
Sets out four scenarios of action from banks and discusses the implications for transition plans and supervisors across each

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