Disclaimer: Copyright infringement is not intended.
The Reserve Bank proposes to create a data repository namely RB-CRIS.
This is an initiative of RBI which aims to enhance climate risk assessments by providing high-quality, standardized data to all.
It comprises two parts. The first part will be a web-based directory, listing various data sources, (meteorological, geospatial, etc.).
It will be publicly accessible on the RBI website.
The second part will be a data portal which will consist of processed data in standardised formats.
Only the regulated entities will have access to the data in a phased manner.
Climate change is emerging as one of the significant risks to the financial system.
Climate risk assessments are crucial for regulated entities to ensure the stability of their
balance sheets and that of the financial system.
Such an assessment requires high-quality data relating to local climate scenarios, climate forecasts, and emissions.
There are various gaps in the available climate-related data such as fragmented and varied sources, differing formats, frequencies and units.
To bridge these gaps Climate Risk Information System is needed.
The Reserve Bank of India (RBI) released a draft disclosure framework on climate-related financial risks on February 28, 2024.
The framework requires regulated entities (REs) to disclose information on the following four areas: governance, strategy, risk management, and metrics and targets.
The framework is aligned with international standards set by the Task Force on Climate-Related Financial Disclosures.
The framework is mandatory for Indian banks, financial institutions, and top NBFCs.
Disclosure requirements
The requirements for disclosures vary based on the size and complexity of the regulated entities (REs) operations.
|
The Task Force on Climate-related Financial Disclosures (TCFD) is an industry-led group that provides recommendations for how organizations can report on their climate-related financial information. The Financial Stability Board (FSB) created the TCFD in 2015. |
Important articles for reference
Financial Stability Board (FSB)
Sources:
|
PRACTICE QUESTION Q.Consider the following statements about the Reserve Bank Climate Risk Information System:
Which of the above statements are correct? A. 1 and 2 only B. 2 and 3 only C. 1, 2 and 3 only D. None Ans: A Explanation: Statement 1 is correct Reserve Bank Climate Risk Information System (RB-CRIS) is an initiative of RBI which aims to enhance climate risk assessments by providing high-quality, standardized data to all. Statement 2 is correct It comprises two parts. The first part will be a web-based directory, listing various data sources, (meteorological, geospatial, etc.). It will be publicly accessible on the RBI website. Statement 3 is incorrect The second part will be a data portal consisting of datasets (processed data in standardised formats). The access to this data portal will be made available only to the regulated entities in a phased manner. |
© 2024 iasgyan. All right reserved