<\/p>\n
Amid growing resistance, Basel Committee opts for voluntary compliance.<\/p>\n
In the face of faltering efforts to mandate enhanced climate disclosure amid growing opposition in the U.S., global banking regulators are publishing a voluntary disclosure framework for banks.<\/p>\n
The global standard setter for banks, the Basel Committee on Banking Supervision, issued its framework for reporting on climate-related financial risks. It covers both qualitative and quantitative disclosures and declares that compliance should be voluntary, allowing jurisdictions to decide whether to implement it or not.<\/p>\n
A Brussels-based advocacy group that champions financial system reforms, Finance Watch, criticized the committee\u2019s decision to make the framework voluntary, calling it \u201ca serious step backwards.\u201d<\/p>\n
\u201cThe voluntary framework marks a clear shift from the Basel Committee\u2019s earlier direction. It was made voluntary to appease domestic political concerns while maintaining the illusion of a common global standard. But if jurisdictions diverge, the coordinated global approach needed to manage climate risk is fundamentally undermined,\u201d said Julia Symon, head of research and advocacy, in a release.<\/p>\n
While setting a global prudential disclosure standard \u201cis a positive step in the current geopolitical environment \u2026 relying on the goodwill of the jurisdictions will not suffice,\u201d she said. \u201cWithout clear, consistent data, supervisors are flying blind, unaware of the real risks building up on balance sheets. A well-defined, widely applied disclosure framework is essential, not just to promote comparability, but to enable effective risk identification, assessment and mitigation.\u201d<\/p>\n
In addition to making the framework voluntary, the Basel Committee also made several changes since its initial consultation \u2014 such as replacing the term \u201cforecasts\u201d with \u201ctargets,\u201d only requiring disclosure of material risks, and scrapping certain disclosures of facilitated emissions.<\/p>\n
The committee stressed that users of the framework should evaluate banks\u2019 climate disclosures holistically \u2014 with users \u201cunderstanding the strengths and shortcomings of the disclosed information.\u201d<\/p>\n
\u201cGiven the unique and complex nature of climate-related financial risks, there is no single metric that can perfectly capture these risks,\u201d the group said in its paper. Indeed, it acknowledged that \u201cmultiple quantitative metrics and qualitative information may be needed to form a comprehensive picture of banks\u2019 exposure to climate-related financial risks.\u201d<\/p>\n
The framework also incorporates flexibility in recognition of the ongoing evolution in \u201cthe accuracy, consistency and quality of climate-related data,\u201d the Basel Committee said, adding that it will monitor the implementation of other reporting frameworks and the disclosure practices of global banks to assess whether any revisions to the framework are warranted in the future.<\/p>\n
Finance Watch noted that the final framework included some weaker standards than originally proposed.<\/p>\n
\u201cWe\u2019re seeing one step forward, two steps back,\u201d Symon said. \u201cAs climate risks intensify, the momentum for coordinated action is fading. But climate change affects banks everywhere, and those banks are deeply interconnected. When one jurisdiction treats climate risks as optional, it raises financial stability risks for everyone.\u201d<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Amid growing resistance, Basel Committee opts for voluntary compliance. In the face of faltering efforts to mandate enhanced climate disclosure amid growing opposition in the U.S., global banking regulators are publishing a voluntary disclosure framework for banks. The global standard setter for banks, the Basel Committee on Banking Supervision, issued its framework for reporting on […]<\/p>\n","protected":false},"author":1,"featured_media":4269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/Climate-3-960x445.jpg",960,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/Climate-3-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/Climate-3-300x203.jpg",300,203,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/Climate-3.jpg",960,651,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=4268"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4268\/revisions"}],"predecessor-version":[{"id":4270,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4268\/revisions\/4270"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/4269"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=4268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=4268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=4268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}