The Basel Committee on Banking Supervision issued a public consultation on principles for the effective management and supervision of climate-related financial risks. This follows the publication of a series of analytical reports earlier this year.
Through this public consultation, the Committee seeks to promote a principles-based approach to improving both banks’ risk management and supervisors’ practices related to climate-related financial risks. They mention a role for internal auditors:” The third line of defense, the internal audit function, should carry out regular reviews of the overall internal control framework and systems in the light of changes in methodology, business, and risk profile, as well as in the quality of underlying data.
Any comments on the principles should be submitted here by 16 February 2022.