Basel Committee consults on principles for the effective management and supervision of climate-related financial risks

• Basel Committee issues public consultation on principles for the effective management and supervision of climate-related financial risks.
• The consultation paper seeks to promote a principles-based approach to improve banks' risk management practices and supervisory practices related to climate-related financial risks.
• The Committee invites comments on the principles by 16 February 2022.

The Basel Committee on Banking Supervision today issued a public consultation on principles for the effective management and supervision of climate-related financial risks. This follows the publication of a series of analytical reports earlier this year.

The Committee is taking a holistic approach to addressing climate-related financial risks to the global banking system. This includes the assessment and consideration of disclosure, supervisory and regulatory measures.

Through this public consultation, the Committee seeks to promote a principles-based approach to improving both banks' risk management and supervisors' practices related to climate-related financial risks. The principles seek to achieve a balance in providing a common baseline for internationally active banks and supervisors, while retaining sufficient flexibility given the evolving practices in this area.

The Committee intends to monitor implementation across member jurisdictions to promote a common understanding of expectations, support the development of harmonised practices and facilitate implementation of the principles as soon as possible.

The Committee welcomes comments on the principles, which should be submitted here by 16 February 2022. All submissions will be published on the BIS website unless a respondent specifically requests confidential treatment.