The South African Reserve Bank’s Prudential Authority issued an updated Guidance Note on climate-related disclosures for banks, branches of foreign institutions and controlling companies, incorporating the Basel Committee on Banking Supervision’s voluntary climate-risk disclosure framework and the International Financial Reporting Standards climate-related disclosures standard. The guidance replaces the previous climate-disclosure guidance issued in 2024. The Guidance Note distinguishes between qualitative and quantitative disclosures and includes four disclosure templates. It sets expectations for qualitative reporting across governance, strategy and risk management, including board and management oversight, identification of material physical and transition risks across time horizons, use of scenario analysis, transition plans where disclosed, and the effects of climate-related risks and opportunities on the bank’s financial position, performance and cash flows. It also sets out methodological disclosures for transition, physical and concentration risks, and quantitative reporting on exposures and financed emissions by sector, physical-risk exposures by geography, financed greenhouse gas emission intensity per physical output for targeted sectors, and mortgage exposures by energy-efficiency level, with sector reporting referenced to the 18 TCFD sectors and geographic reporting starting at provincial level. Independent external assurance is not required at this time, but disclosures are expected to be subject to internal governance processes and controls, and banks are asked to share the Guidance Note with their independent auditors and return an acknowledgement signed by the chief executive officer and auditors. The Prudential Authority indicates that climate-related disclosures are expected to become mandatory over time, with timing dependent on factors including corporate-sector disclosure requirements and international standard-setting developments.
South African Reserve Bank 2025-10-14
South African Reserve Bank updates guidance for banks on climate-related disclosures aligned to BCBS and IFRS standards
The South African Reserve Bank’s Prudential Authority issued updated guidance on climate-related disclosures for banks, incorporating Basel Committee and IFRS frameworks. It outlines qualitative and quantitative disclosure expectations, including governance, strategy, risk management, and sector-specific reporting. While independent external assurance isn't required now, mandatory climate-related disclosures are anticipated in the future.