133 downloads
The Basel Committee issued this Newsletter to provide greater detail on its internal discussions regarding the implementation of the Principles for the effective management and supervision of climate-related financial risks (Principles). The Committee believes the information provided may be useful for both supervisors and banks in their day-to-day activities.
Since the release of the Principles in June 2022, both supervisory authorities and banks have advanced in adopting them, yet further efforts are imperative for complete implementation. This entails continuous commitment and sufficient allocation of resources by banks and supervisors to enhance their capabilities and knowledge. Despite the evolving nature of methodologies and data for assessing climate-related financial risks, enhancing data availability and quality remains a crucial ongoing focus. In instances where dependable or comparable climate-related data are lacking, banks are advised to consider reasonable proxies and assumptions for their internal reporting, recognizing the limitations and sensitivities of risk evaluations. The Basel Committee emphasizes the significance of addressing climate-related financial risks and pledges to oversee advancements, aiming to expedite implementation.
Comments (0)