This note aims to map the current landscape of climate-related disclosures across multiple global jurisdictions and assesses the alignment of these regulations with global frameworks, exploring the transparency and consistency of corporate disclosures. We look into the evolving landscape of sustainability reporting, transition plans and its implications for companies navigating environmental challenges.

An analysis of top 5 banks in India (per loan book size) reveals that banking sector is making gradual yet notable shift toward integrating climate risk considerations into lending activities driven by regulatory signals, global initiatives and outlook for resilience. Key dimensions such as – risk identification & adoption of sustainable finance frameworks signals firm foundations, although, greening of the financial system needs intensification.

Climate change introduces systemic challenges to businesses and society, with its unpredictability posing risks beyond conventional investment expectations. This guidebook offers a comprehensive climate risk assessment framework to define, evaluate, and manage environmental and financial risks in investments. By adopting this structured approach, mutual funds and asset managers can better assess and integrate climate risks into decision-making. It aims to help identify and interpret various climate-related risks, enhancing investment strategies with climate risk insights.

For more information, contact oanand@ckinetics.com or iccad@ckinetics.com.

Climate-related risks pose significant challenges to banks and financial institutions, potentially altering sector credit parameters. Many entities are developing computational models to estimate impacts from transition and physical risk drivers in various climate scenarios. However, gaps persist in harmonized assessments, transition pathways, and physical risk scenario data. This briefing note outlines standardized processes for climate risk assessments, addresses data gaps in corporate sustainability reporting and financed emissions, and suggests enhancements to the BRSR framework. It also proposes regulatory actions to catalyze effective climate risk practices in capital markets.