Basel Committee on Banking Supervision – Consultation on principles for the effective management and supervision of climate-related financial risks [Completed]
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Effective date(s): |
The Committee expects implementation of the principles as soon as possible and will monitor progress across member jurisdictions to promote a common understanding of supervisory expectations and support the development and harmonization of strong practices across jurisdictions |
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Last updated: |
June 2022 |
Overview
On November 30, 2021, the Basel Committee on Banking Supervision has issued a public consultation on principles for the effective management and supervision of climate-related financial risks. Comments are requested by February 16, 2022.
The Committee is taking a holistic approach to addressing climate-related financial risks to the global banking system. This includes the assessment and consideration of disclosure, supervisory and regulatory measures.
Through this public consultation, the Committee seeks to promote a principles-based approach to improving both banks' risk management and supervisors' practices related to climate-related financial risks. The principles seek to achieve a balance in providing a common baseline for internationally active banks and supervisors, while retaining sufficient flexibility given the evolving practices in this area.
For further details, review the press release and consultative document.
On June 15, 2022, the Committee issued its principles for the effective management and supervision of climate-related financial risks. Through this publication, the Committee aims to promote a principles-based approach to improving both banks' risk management and supervisors' practices related to climate-related financial risks.
The paper sets out 18 principles covering corporate governance, internal controls, risk assessment, management and reporting. They seek to achieve a balance in improving practices and providing a common baseline for internationally active banks and supervisors, while retaining sufficient flexibility given the degree of heterogeneity and evolving practices in this area.
The Committee expects implementation of the principles as soon as possible and will monitor progress across member jurisdictions to promote a common understanding of supervisory expectations and support the development and harmonization of strong practices across jurisdictions.
For further details, review the press release and the final report.
Other developments
June 2022
On June 15, 2022, the Committee issued its principles for the effective management and supervision of climate-related financial risks. The Committee expects implementation of the principles as soon as possible and will monitor progress across member jurisdictions to promote a common understanding of supervisory expectations and support the development and harmonisation of strong practices across jurisdictions.
November 2021
On November 30, 2021, the Basel Committee on Banking Supervision has issued a public consultation on principles for the effective management and supervision of climate-related financial risks. Comments are requested by February 16, 2022.