Basel Committee issues responses to frequently asked questions (FAQs) to clarify how climate-related financial risks may be captured in the existing Basel Framework. Clarifications intended to facilitate consistent interpretation of existing Pillar 1 standards given the unique features of climate-related financial risks and should not be interpreted as changes to the standards. Part of the Committee’s ongoing and holistic approach to addressing climate-related financial risks to the global banking system.
This information was gathered from the Bank for International Settlements