BCBS Issues Two Climate-Related Reports Highlighting Work Remaining

On April 14, 2021, the Basel Committee on Banking Supervision (BCBS) issued two climate-related reports—one on climate-related risk drivers and their transmission channels and a companion report on measurement methodologies for financial risks. This Legal Update provides further detail on what the reports reveal regarding progress made in the assessment and quantification of climate-related financial risks by banks and their supervisors and comments on the further work that remains.