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The report links this approach to existing practices such as climate risk evaluations, scenario analysis, and tailored stress testing, aiming to support decarbonisation and broader resilience.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},240990,1791720840,{"code":4,"msg":82,"data":83},"success",[84,88,92,97,102,107,112,117,122],{"id":85,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":86,"slug":87},11,90,"presentations",{"id":55,"doc_module":22,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Resumes",80,"resumes",{"id":93,"doc_module":22,"doc_module_name":25,"category_name":94,"show_sort_weight":95,"slug":96},14,"Invoices",70,"invoices",{"id":98,"doc_module":22,"doc_module_name":25,"category_name":99,"show_sort_weight":100,"slug":101},15,"Posters",60,"posters",{"id":103,"doc_module":22,"doc_module_name":25,"category_name":104,"show_sort_weight":105,"slug":106},16,"Social Media",50,"social-media",{"id":108,"doc_module":22,"doc_module_name":25,"category_name":109,"show_sort_weight":110,"slug":111},17,"Forms",40,"forms",{"id":113,"doc_module":22,"doc_module_name":25,"category_name":114,"show_sort_weight":115,"slug":116},18,"Letters",30,"letters",{"id":118,"doc_module":22,"doc_module_name":25,"category_name":119,"show_sort_weight":120,"slug":121},21,"Paper Templates",5,"papers-templates",{"id":123,"doc_module":22,"doc_module_name":25,"category_name":124,"show_sort_weight":4,"slug":125},158,"General","general-158",{"code":4,"msg":82,"data":127},{"doc_id":79,"user_id":128,"nickname":42,"user_avatar":129,"doc_module":22,"category_id":85,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":135,"language":136,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":12,"update_tm":140,"read_time":55},1099514068035,"https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c","Integrating bank transition planning into prudential supervision  \nAgnieszka Smoleńska and Ira Poensgen  \nPolicy report  \nMay 2025  \nCETEx – the Centre for Economic Transition Expertise – was established in 2024 at the London School of Economics and Political Science as a specialised research and policy centre to support the ambitious reforms required to deliver sustainable, inclusive and resilient economies and financial systems across Europe. The Centre is hosted by the Grantham Research Institute on Climate Change and the Environment and has founding funding from the Sequoia Climate Foundation, ClimateWorks Foundation, Children’s Investment Fund Foundation, Sunrise Project and European Climate Foundation.  \n[www.cetex.org](www.cetex.org)  \nThe Grantham Research Institute on Climate Change and the Environment was established in 2008 at the London School of Economics and Political Science. The Institute brings together international expertise on economics, as well as finance, geography, the environment, international development and political economy to establish a world-leading centre for policy-relevant research, teaching and training in climate change and the environment. It is funded by the Grantham Foundation for the Protection of the Environment, which also funds the Grantham Institute – Climate Change and the Environment at [Imperial College London.](Imperial College London. www.lse.ac.uk/granthaminstitute)[ www.lse.ac.uk/granthaminstitute](Imperial College London. www.lse.ac.uk/granthaminstitute)  \nAbout the authors  \nDr Agnieszka Smoleńska is a Senior Policy Fellow at CETEx.  \nIra Poensgen is a Policy Fellow at CETEx.  \nAcknowledgements  \nThe authors would like to thank Lea Reitmeier, Irene Claeys, Nicholas Dodd, Daisy Pacheco, George Harris, Nicki Harrison, Nejc Smole, David Rozumek, Fernanda Bellesteros, Karsten Neuhoff, Franziska Schütze, Matthias Täger and Maria Nieto for their review comments on an earlier draft of this report. Georgina Kyriacou edited the report. Figure 2.1 was designed by Miranta Kouvari at Science Graphic Design.  \nThe authors declare no conflict of interest in the preparation of this report. The views in this report are those of the authors and do not necessarily represent those of the host institutions or their funders.  \nThis report was first published in May 2025 by CETEx at the London School of Economics and Political Science.© The authors, 2025  \nLicensed under CC BY-NC 4.0.  \nCommercial permission requests should be directed to the Grantham Research Institute.  \nSuggested citation: Smoleńska A and Poensgen I (2025) Integrating transition planning into prudential  \nsupervision. London: Centre for Economic Transition Expertise, London School of Economics and Political Science.  \nContents  \nSummary 4  \n1. Introduction: The rise and relevance of bank transition  \nplans 6  \n2. The emerging governance landscape around bank  \ntransition plans 9  \n3. Transition plans in supervisory processes 15  \n4. Recommendations and outlook 29  \nReferences 31  \nSummary  \n• Transition plans are increasingly recognised as a tool in the governance of the low-carbon, climate-resilient transition. Through transition planning, firms can develop a strategic response to the transition, manage and implement changes to their business model and operations, improve management of risk and opportunities related to climate change, communicate their strategy to internal and external stakeholders, and demonstrate credibility behind their commitments. The transition plan regime spans a broad range of instruments, from ‘softer’ levers such as voluntary guidance or expectations from investors and other stakeholders, to ‘harder’ levers such as mandatory disclosure obligations, due diligence obligations and prudential regulations.  \n• Transition plans are drawing the attention of prudential regulators and supervisors as part of their supervisory remit. Bank transition plans provide a forward-looking projection of how banks respo","cbCaidAxDLrOZoNW","https://ap.wps.com/l/cbCaidAxDLrOZoNW","pdf",685074,34,"English","# Summary\n# 1. Introduction: The rise and relevance of bank transition plans\n# 2. The emerging governance landscape around bank transition plans\n# 3. Transition plans in supervisory processes\n# 4. Recommendations and outlook\n# References","[{\"question\":\"What role do bank transition plans play in governance for climate transition?\",\"answer\":\"Bank transition plans increasingly function as a governance tool for the low-carbon, climate-resilient transition. They help firms shape strategic responses, manage and implement changes, improve management of climate-related risks and opportunities, and communicate credible commitments.\"},{\"question\":\"Why are prudential regulators and supervisors paying attention to transition plans?\",\"answer\":\"Prudential regulators and supervisors are focusing on transition plans because they provide a forward-looking view of how banks identify, assess, and mitigate physical and transition risks linked to climate change. Alignment with real-economy transition planning is treated as an indicator of risk to financial stability.\"},{\"question\":\"How does integrating transition planning into supervision expand the prudential toolbox?\",\"answer\":\"Integrating transition planning into supervisory processes broadens the prudential toolbox to address transition uncertainties in a forward-looking manner. The report links this approach to existing practices such as climate risk evaluations, scenario analysis, and tailored stress testing, aiming to support decarbonisation and broader resilience.\"}]","Integrating bank transition planning into prudential supervision - policy report | PDF",1789168587]