The Basel Committee on Banking Supervision published Frequently asked questions on climaterelated financial risks
The Basel Committee on Banking Supervision published responses to frequently asked questions to clarify how climate-related financial risks may be captured in existing Pillar 1 standards.
These responses are intended to facilitate a globally consistent interpretation of existing standards given the unique features of climate-related financial risks and should not be interpreted as changes to the standards. They are consistent with the Basel Committee’s “Principles for the effective management and supervision of climate-related financial risks”.
The Committee recommends that banks should consider how to incorporate climate-related financial risks in their interpretation and application of the existing Basel Framework, and continuously develop their capabilities and expertise in relation to climate-related financial risks.
The Committee is examining the extent to which climate-related financial risks can be addressed within the Basel Framework, identifying potential gaps in the current framework and considering possible measures to address them. This ongoing work spans regulation, supervision and disclosure.
Read the full report here: https://bit.ly/3UFtrqi
