NGFS releases climate disclosure guide for central banks

December 16, 2021|Written by Graham Caswell|Network for Greening the Financial System, Bank of England

The Network of Central Banks and Supervisors for Greening the Financial System (NGFS) has released its first ‘how to’ guide for central banks outlining how they can prepare their own climate-related disclosures in line with the recommendations of the Taskforce on Climate-related Financial Disclosures.

Focusing on climate-related financial exposures, the technical document covers the disclosure of climate-related governance, strategy and risk management. It recommends that central banks define and disclose climate-related targets, supported by appropriate metrics. It also recommends that central banks disclose how governance structures for monetary policy, asset management, financial stability, and internal operations encompass climate-related risks and opportunities.

The guide also advises central banks to disclose their strategies for identifying and assessing the impacts of climate-related risks, and that they describe how climate-related risks are integrated into their existing risk management frameworks.

“It is important for central banks to seek to lead by example and to demonstrate accountability by disclosing climate-related risks and, where relevant, opportunities in a progressively wider scope and increasing detail,” the guide makes clear, while also warning that every institution is different and that there is no ‘one size fits all’ approach.

“This ‘how to’ guide delivers on our commitment to promote climate-related disclosure among central banks,” said Dr Sabine Mauderer, Bundesbank board member and chair of the NGFS workstream that produced the guide. “It is an open invitation to all central banks anywhere to lead by example in disclosing their climate-related risks.”

The first major central bank to make climate-related financial disclosures was the Bank of England, which released its second annual disclosure earlier this year.

The NGFS guide is published as the network of central banks and financial supervisors marks four years since it launched with just eight members at the One Planet Summit in Paris in December 2017. With the recent addition of the Banco Central de la Republica Argentina, the group now has 102 members representing most of the world’s economy, markets and fossil fuel emissions.

This page was last updated December 16, 2021

Share this article