Climate-related financial risks: the results of BIS survey on current initiatives
13 May 2020
Recently, The Bank for International Settlements (BIS) published a report which summarises the main results of a stocktake conducted by the Basel Committee of its members' initiatives on climate-related financial risks. In total, responses to the stocktake were received from 27 members and observers, including the European Central Bank (ECB) and the European Banking Authority (EBA).
A large majority of respondents noted that they do not have an explicit mandate with regards to climate-related financial risks but indicated that such risks could potentially impact the safety and soundness of individual financial institutions and could pose potential financial stability concerns for the financial system.
This article provides further insight on the common approaches and operational challenges identified in developing a robust framework to assess climate-related financial risks.