Next GRASFI Annual Conference: 25 – 27 August 2025 in Paris. 

HomePaperPrudential transition plans: the potential of a new regulatory instrument and a research agenda

Prudential transition plans: the potential of a new regulatory instrument and a research agenda

24 May 2023
Authors: Simon Dikau (London School of Economics), Nick Robins (London School of Economics), Agnieszka Smoleńska (Polish Academy of Sciences), Jens van ’t Klooster (University of Amsterdam), Ulrich Volz (SOAS, University of London)
Presenter: Simon Dikau (London School of Economics)
Abstract:

Net zero transition plans can be used by prudential supervisors as an additional dynamic instrument to assess, address and bring distant financial risks into the present. To date, transition plans have primarily emerged as non-financial disclosure instrument and as such, their prudential application has been limited. In this article, we discuss the role that transition plans can play in banking supervision. The article outlines steps towards incorporating transition plans into prudential supervision, thereby enabling supervisors to effectively use transition plans as a forward-looking methodology to better manage and overcome some of the challenges associated with climate risks.

You May Also Like:

14 August 2024
Authors: Quyen Nguyen (University of Otago), Ivan Diaz-Rainey (Griffith University), Adam Kitto (University of New South Wales), Nicholas Pittman (EMMI), Renzhu Zhang (University of Otago)
14 August 2024
Login to your account