- The Basel Committee has published a voluntary framework for disclosing climate-related financial risks for jurisdictions to consider.
- The framework incorporates flexibility to account for evolving climate-related data.
- The Committee will monitor relevant developments, including implementation of other reporting frameworks and disclosure practices by internationally active banks.
The Basel Committee on Banking Supervision has published today its voluntary framework for the disclosure of climate-related financial risks, which includes both qualitative and quantitative information. The Committee has agreed this framework will be voluntary in nature, with jurisdictions to consider whether to implement it domestically.
The Committee acknowledges that the accuracy, consistency and quality of climate-related data are evolving, and therefore it is necessary to incorporate a reasonable level of flexibility into the final framework. The Committee also recognises that multiple quantitative metrics and qualitative information may be needed to form a comprehensive picture of banks’ exposure to climate-related financial risks. Users need to consider the disclosures holistically, understanding the strengths and shortcomings of the disclosed information.
The Committee will monitor relevant developments, including implementation of other reporting frameworks and disclosure practices by internationally active banks in member jurisdictions, and consider whether any revisions to the framework would be warranted in future.
Note to editors:
The Basel Committee is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. The Committee reports to the Group of Central Bank Governors and Heads of Supervision and seeks its endorsement for major decisions. The Committee has no formal supranational authority, and its decisions have no legal force. Rather, the Committee relies on its members’ commitments to achieve its mandate. The Group of Central Bank Governors and Heads of Supervision is chaired by Tiff Macklem, Governor of the Bank of Canada. The Basel Committee is chaired by Erik Thedéen, Governor of Sveriges Riksbank.
More information about the Basel Committee is available here.
