This voluntary framework for the disclosure of climate-related financial risks includes both qualitative and quantitative information. The Basel Committee has agreed this framework will be voluntary in nature, with jurisdictions to consider whether to implement it domestically.
The Basel 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 Basel 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.
