The Disclosure Framework on Climate-related Financial Risks, 2024 will require entities in scope of the draft framework to disclose information about their climate-related financial risks and opportunities for the users of financial statements. 

The draft framework applies to the following entities:

• All scheduled commercial banks (excluding local area banks, payments banks and regional rural banks)
• All tier IV primary (urban) co-operative banks 
• All all-India financial institutions
• All top and upper layer non-banking financial companies 

The disclosure requirements are structured using the four pillars that are also used in IFRS S1: governance, strategy, risk management, and metrics and targets.

Entities in scope of the draft framework will be required to report information on governance, strategy and risk management from FY 2025-2026 onwards. Information on metrics and targets will be required from FY 2027-2028 onwards. For tier IV primary (urban) co-operative banks, the requirements will apply one year later.

These disclosures apply in addition to the disclosures that are already required by the Business Responsibility and Sustainability (BRSR) framework of the Securities and Exchange Board of India (SEBI).

For more information, including access to the draft framework, please see the press release on the RBI website.