Basel Committee seeks comment on climate risk disclosure framework

As part of its ongoing work to address climate-related financial risks to the global banking system, the Basel Committee on Banking Supervision published a consultation paper outlining a rationale and approach for disclosure of these risks under Pillar 3 of the Basel framework. Comments on the proposals are due Feb. 29.

In the consultation paper, the committee noted that it “aims to incorporate a reasonable level of flexibility into a future framework,” given the nascent stages of climate-related data gathering and reporting. Among other things, the committee is seeking feedback on potential quantitative and qualitative data disclosure requirements; bank-specific metrics for quantitative climate disclosures; the disclosure of forward-looking information through forecasts; quantitative disclosure requirements subject to jurisdictional discretion; and several tables and templates it has developed.

The committee is also seeking input on the feasibility of a Jan. 1, 2026, implementation date for the reporting requirements, as well as potential transitional arrangements.