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.
Citing the nascent state of climate reporting and the resulting confusion by stakeholders of internal control requirements, ABA urged the International Auditing and Assurance Standards Board “to take a leading role in educating stakeholders as to the many demands of the assurance process, including the related costs and internal controls that will likely be needed” by companies reporting sustainability-related information.
The Treasury Department announced that its Federal Insurance Office will soon begin collecting data from insurers to assess climate-related financial risk to consumers.
The FDIC, Federal Reserve and Office of the Comptroller of the Currency released interagency guidance for managing climate-related risk at financial institutions with at least $100 billion in assets.
California should take steps to ease the burden for financial institutions to comply with a new state law that requires them to report their greenhouse gas emissions, including those emissions for which they are not directly responsible, ABA, the California Bankers Association and California Credit Union League said in a joint letter.
Efforts by the International Sustainability Standards Board to define how corporate climate and sustainability data will be digitally analyzed should be integrated into existing efforts by the board, as opposed to being separately addressed, ABA said.
The Treasury Department published a set of nine voluntary principles to promote consistency among financial institutions that have made commitments to reduce greenhouse gas emissions through their financing and investment decisions.
The Federal Reserve needs to implement measures to adequately address climate-related financial risk as its current efforts “fall short in responding to the current climate crisis,” a group of 11 Democratic lawmakers said.
California lawmakers have advanced two proposed state laws to require companies doing business in the state to report their greenhouse gas emissions and prepare biennial reports on their climate-related financial risks.
ABA urged the ISSB to focus on the development of resources and coordination of industry-specific activities related to implementing recently released corporate disclosure standards on general sustainability and climate-related issues.