While Pillar 3 disclosures are meant to provide information about banking institutions’ risk management practices and regulatory capital ratios, UK Finance believes that the the Basel Committee on Banking Supervision (BCBS) can use its weight to back the ISSB’s IFRS standards and promote their adoption globally. The comment letter notes:

We recommend that BCBS encourage IFRS S2 adoption by banks in those regions that do not implement them. We recommend that the BCBS do all that is necessary to ensure that the global baseline framework of IFRS S2 requirements become and continue to inform jurisdictional climate risk disclosure requirements, driving consistency, comparability and thereby support broader sustainability disclosure objectives.

Please click to access the full comment letter on the UK Finance website. The recommendations around IFRS S2 Climate-related Disclosures inform the five key recommendations in the cover note.