BIS Basel Committee publishes voluntary framework for disclosing climate-related financial risks
The Bank for International Settlements (BIS) Basel Committee has published a voluntary framework for disclosing climate-related financial risks, mandating that institutions provide both qualitative and quantitative information about their exposure to climate risks. Designed with sufficient flexibility to accommodate the evolving accuracy, consistency, and quality of climate-related data, the framework recognises that a comprehensive overview of banks' exposures may require multiple metrics. As implementation is voluntary, jurisdictions are invited to consider whether to incorporate the framework into their domestic regulatory systems. Additionally, the Committee has committed to monitoring relevant developments—including the adoption of other reporting frameworks and ongoing disclosure practices by internationally active banks—to assess whether revisions to the framework may be needed in the future.