Background:

Climate change is becoming an increasingly powerful driver of risk for banks and other financial institutions. It must be noted that climate risk is a transverse risk which means that it will manifest itself in existing risks facing the financial intermediaries. While banks have started recognizing climate risk as a potential financial risk with varying degrees of seriousness, regulators world over have started initiating measures to address this transverse risk. Comprehensive climate risk regulatory guidance has been issued by the Financial Stability Board's Task Force on Climate - related Financial Disclosures (TCFD). In July 2022, the Reserve Bank of India has published a Discussion Paper on Climate Risk and Sustainable Finance with reference to, among others, the TCFD guidance.

The Discussion Paper which solicits public comments refers to Climate Risk from governance, strategy, risk recognition, risk assessment, risk monitoring, risk mitigation and risk reporting & disclosure perspectives. Essentially, the Discussion Paper could feed into an evolving regulatory overlay on the existing regulatory framework for RBI regulated entities (REs).

Objective:

Building on the previously conducted CAFRAL learning program on Climate Change, Transition Risk & Sustainable Finance in May, 2022, this one day long CAFRAL Virtual Conference (VC) seeks to dive deeper into climate risk related financial risks and their management, more particularly in the context of the Discussion Paper. It, therefore, looks to contribute more substantively towards capacity building among senior and top executives of all REs in the matter of climate risk management within their current risk management framework.

Conference Highlights:

Following topics will be deliberated upon in the Conference:

• Introduction to Climate Risk for Banks, NBFCs and FIs
• Managing Climate Related Financial Risks
• Climate Risk and REs: Governance and Legal Perspective
• Climate Risk Management and Evolving Regulatory Response:  Local and Global
• Climate Risk and REs: A Rating Perspctive
• Climate Risk and Financial Risk Management: Strategies of Financial Intermediaries