On 29 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultative document – Disclosure of climate-related financial risks.

The Basel Committee is analysing how a Pillar 3 disclosure framework for climate-related financial risks would further its mandate to strengthen the regulation, supervision, and practices of banks worldwide with the purpose of enhancing financial stability and the potential design of such a framework.

This consultation seeks the views of stakeholders on the Basel Committee’s preliminary proposal for qualitative and quantitative Pillar 3 disclosure requirements that would complement the work of other standard setters, including the International Sustainability Standards Boards (ISSB) and provide a common disclosure baseline for internationally active banks.

Based on the feedback received from the consultation, the Basel Committee will consider which elements would be mandatory and which subject to discretion.

The Basel Committee also proposes a potential implementation date of 1 January 2026, one year after the effective date proposed by the ISSB and after the expiration of the ISSB’s proposed transitional arrangements. It also welcomes views on whether any transitional arrangements would be required and, if so, the rationale and duration.

The deadline for feedback to the consultative document is 29 February 2024.