April 2021: Basel Committee publishes analytical reports on climate-related financial risks

by the Bank for International Settlements

  • The two reports discuss transmission channels of climate-related risks to the banking system, and the measurement methodologies of climate-related financial risks.
  • Climate risk drivers can be captured in traditional financial risk categories, but additional progress is needed to better estimate these risks.
  • The reports provide a conceptual foundation for the Basel Committee’s next phase of work to identify potential gaps in the Basel Framework and consider measures to address them.

Link: Basel Committee publishes analytical reports on climate-related financial risks