BCBS Consults on Climate Risk Disclosure Framework

Global banking standard-setter Basel Committee on Banking Supervision (BCBS) has issued a public consultation paper on a Pillar 3 disclosure framework for climate-related financial risks. In June last year, the BCBS published principles for the effective management and supervision of climate-related financial risks. In December 2022, it published a set of FAQs to clarify how these financial risks may be captured in existing Pillar 1 standards. The BCBS is now analysing how a Pillar 3 disclosure framework for climate-related financial risks would further its mandate to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability, and the potential design of such a framework. The consultation paper seeks views on a preliminary proposal for qualitative and quantitative Pillar 3 disclosure requirements that would complement the work of other standard setters, including the International Sustainability Standards Board, and offer a common disclosure baseline for climate-related financial risks across internationally active banks. The consultation paper seeks feedback on all aspects of the proposal, including the importance, feasibility, and features of a Pillar 3 framework for climate-related financial risks, and prudential metrics that would most effectively support the BCBS in its mandate. Based on feedback through the consultation process, the BCBS will consider which elements would be mandatory and which subject to national discretion. The consultation is set to run until 29 February 2024. 

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top