Legal & Regulatory News

BCBS publishes Principles for the effective management and supervision of climate-related financial risks

The Basel Committee on Banking Supervision (BCBS) has published principles for the effective management and supervision of climate-related financial risks, following a consultation launched in November 2021.

The document includes 18 high-level principles. Principles 1 through 12 provide banks with guidance on effective management of climate-related financial risks, while principles 13 through 18 provide guidance for prudential supervisors. The principles seek to achieve a balance in improving practices related to the management of climate-related financial risks and providing a common baseline for internationally active banks and supervisors, while maintaining sufficient flexibility given the degree of heterogeneity and evolving practices in this area

Click here to access the Principles.