Draft Disclosure of Climate-Related Financial Risk for Financial Sector Entities

The RBI has recently released a draft framework for financial sector entities to disclose climate-related risks. Aligned with TCFD recommendations, this framework will be rolled out in two phases for banks and upper-layer entities. Starting from FY 25-26, these entities will be obligated to disclose their governance, strategy, and risk management on climate-related risks. Subsequently, from FY 27-28 onwards, they will be required to formulate and disclose metrics and targets as well.