“Climate change is emerging as a significant risk to the financial system world over. This makes it necessary for regulated entities to undertake robust climate risk assessment, which is sometimes hindered by gaps in high quality climate related data,” said Shaktikant Das, governor, RBI
Mumbai: To bridge these data gaps, the Reserve Bank of India has announced creation of Reserve Bank Climate Risk Information System (RB-CRIS)
“Climate change is emerging as a significant risk to the financial system world over. This makes it necessary for regulated entities to undertake robust climate risk assessment, which is sometimes hindered by gaps in high quality climate related data,” said Shaktikant Das, governor, RBI while announcing the latest monetary policy on Wednesday.
Earlier On 28 February 2024, the RBI issued draft guidelines on ‘Disclosure framework on climate-related financial risks, 2024’.
The framework mandates disclosure by regulated entities (REs) on four key areas of governance, strategy, risk management and metric and targets.
The central banking regulator also recently released a discussion paper on climate risk and sustainable finance and the framework for acceptance of green deposits.\
The disclosure framework is a step towards bringing the climate risk assessment, measurement and reporting requirements under mainstream compliance framework for financial sector entities in India. This move will help incorporate climate-related issues in the overall organisational culture, policies and operations.