Prudential net zero transition plans: the potential of a new regulatory instrument

Dikau, Simon, Robins, Nick ORCID: 0000-0002-6348-4466, van 't Klooster, Jens, Smoleńska, Agnieszka ORCID: 0000-0001-7703-7686 and Volz, Ulrich (2024) Prudential net zero transition plans: the potential of a new regulatory instrument. Journal of Banking Regulation. ISSN 1745-6452

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Abstract

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

Item Type:	Article
Official URL:	https://www.palgrave.com/gp/journal/41261
Additional Information:	© 2024 The Author(s)
Divisions:	Grantham Research Institute
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences
Date Deposited:	07 May 2024 10:06
Last Modified:	12 Dec 2024 04:10
URI:	http://eprints.lse.ac.uk/id/eprint/122928

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