RBI on 28 February 2024, came up with draft Disclosure framework on Climate-related Financial Risks for Schedule Commercial Banks (excl. Local Area Banks, Payment Banks, and Regional Rural Banks), All Tier-IV Primary (Urban) Co-operative Banks, All All-India Financial Institutions (viz., EXIM Bank, NABARD, NHB, SIDBI etc.) and All Top and Upper Layer Non-Banking Financial Companies (NBFCs).
CareEdge Advisory has come up with a whitepaper addressing the (i) impacts, (ii) challenges and opportunities, (iii) infrastructure demand to meet RBI requirements, (iv) market response, and; (v) possible way forward for Financial Institutions (FIs) in the wake of the climate-related reporting framework. This whitepaper will help FIs determine their course of action in the near term to model and report climate-related financial risks from FY26 onwards.
It is expected that this framework will enable:
- Transparent disclosures on financed emissions from FIs in the near term,
- FIs to mitigate climate risk in the mid-to-long term.
