BCBS voluntary framework for disclosure of climate-related financial risks

The Basel Committee on Banking Supervision (BCBS) has released a framework for the voluntary disclosure of climate-related financial risks, alongside an updated webpage and press release. This framework, which builds on the November 2023 consultative document and forms part of the BCBS's broader efforts to strengthen the resilience of the banking system to climate-related risk, is designed to operate within the Pillar 3 disclosure framework. It aims to enhance financial stability by providing banks with structured guidance for disclosing both qualitative and quantitative climate-related financial risks. While the BCBS agreed for the framework to be voluntary in nature, jurisdictions may choose to implement it domestically. The framework is structured around a series of qualitative tables and quantitative templates.

• Table CRFRA, covering governance, strategy and risk management practices related to climate risk.
• Table CRFRB, focusing on banks' assessments of transition, physical and concentration risks.
• Template CRFR1, providing data on transition risk, including exposures and financed emissions by sector.
• Template CRFR2, capturing exposures subject to physical climate risks.
• Template CRFR3, reporting on real estate exposures in the mortgage portfolio, by energy efficiency level.
• Template CRFR4, measuring emission intensity per physical output and by sector.

The BCBS will monitor developments on global disclosure practices and consider revising the framework as necessary in the future.

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