Bank for International Settlements Basel Committee publishes voluntary framework for climate-related financial risk disclosures

The Basel Committee on Banking Supervision at the Bank for International Settlements has published a voluntary framework for the disclosure of climate-related financial risks for jurisdictions to consider adopting domestically. The framework sets out both qualitative and quantitative disclosures and is designed to accommodate evolving climate-related data. The framework builds in flexibility to reflect current limitations in the accuracy, consistency and quality of climate data. It also notes that a comprehensive view of banks’ exposure may require multiple quantitative metrics alongside qualitative information, and that users should assess disclosures holistically, taking account of both strengths and shortcomings. The Committee will monitor relevant developments, including the implementation of other reporting frameworks and disclosure practices by internationally active banks in member jurisdictions, and will consider whether revisions to the framework are warranted.