WASHINGTON, D.C.— Better Markets filed a comment letter to the Basel Committee (Committee) on Banking Supervision urging them to further strengthen and adopt the proposed requirements on disclosure of Climate-Related Financial Risks (CRFR):

Why It Matters:   Our economy, financial system, and citizens are increasingly threatened by severe weather and other climate-related risks. Investors, regulators, policymakers, and members of the public deserve to have the necessary information to understand banks’ exposure to these risks clearly and confidently. The Committee’s proposal for CRFR disclosure requirements for internationally active banks will increase the consistency, comparability, and reliability of this information, providing market participants with better information and data to assess banks’ safety and soundness and the health of the broader financial system.

What We Said: In addition to our broad support, in our comment letter we urged the Committee to make changes to the proposal to better align with the intended objective of regulating and supervising banks worldwide. This included requiring all reporting institutions to base forecasts and transition plans on standardized parameters, accelerating the implementation of these requirements, and further integrating CRFR into the Committee’s broader work related to bank supervision.

Bottom Line: The urgency of climate change cannot be overstated; now is the time for the Committee and regulators around the globe to act.