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Consultative Document – Disclosure of climate-related financial risks

The Basel Committee on Banking Supervision (BCBS) issued a public consultation paper on a Pillar 3 disclosure framework for climate-related financial risks. This work forms part of the Committee’s holistic approach to address climate-related financial risks to the global banking system.

 

The Committee is analysing how a Pillar 3 disclosure framework for climate-related financial risks would further its mandate to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability, and the potential design of such a framework.

 

The BCBS is publishing this consultation paper to seek the views of stakeholders on its preliminary proposal for qualitative and quantitative Pillar 3 disclosure requirements that would complement the work of other standard setters, including the International Sustainability Standards Board (ISSB), and provide a common disclosure baseline for internationally active banks.

 

In particular, and based on feedback through the consultation process, the Committee will consider which elements would be mandatory and which subject to national discretion. More generally, the Committee notes that the development of a meaningful and robust Pillar 3 framework for climate-related financial risks is likely to be an iterative process.

 

The Committee invites submissions on the proposals, which should be submitted to https://www.bis.org/bcbs/commentupload.htm?cdpath=/bcbs/publ/d560.htm by 29 February 2024.

Categories: Recommended Readings
Author: BIS