Principles for the effective management of climate-related financial risks – a comparison with the existing UK regulation
Addressing climate risk is a key agenda item of the Basel Committee on Banking Supervision (BCBS). In June 2022, the Committee issued principles for the effective management and supervision of climate-related financial risks aiming to improve practices of banks and supervisors. These principles represent the culmination of work on climate-related financial risks by the Committee over the past few years.
The Committee has stated that it expects these principles to be implemented by the authorities as soon as possible. With the Bank of England being a member of the BCBS, this article will seek to explore how these principles could impact existing UK regulation and how banks should address climate-related risks.
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