RBI Draft Guidelines on Climate-Related Financial Risks for Regulated Entities
| Aspect | Details |
|---|---|
| Event | RBI released draft guidelines for climate-related financial risks disclosures. |
| Applicability | Scheduled commercial banks, Tier IV primary UCBs, foreign banks, AIFIs, top & upper layer NBFCs. |
| Feedback Deadline | End of April. |
| Global Alignment | Aligns with TCFD framework and RBI's membership in NGFS since April 2021. |
| TCFD Pillars | Governance, Strategy, Risk Management, Metrics and Targets. |
| Key Disclosure Areas | Board oversight, climate risks/opportunities identification, impact on business/strategy, portfolio performance. |
| GHG Emissions Scope | Scope 1, Scope 2, and Scope 3. |
| Implementation Timeline | Governance, Strategy, Risk Management: FY 2025-26 onwards. Metrics and Targets: FY 2027-28 onwards (FY 2028-29 for UCBs). |
| Challenges | Portfolio risk measurement, data estimation, integrating climate risk into credit assessment, governance frameworks, scenario analysis. |