The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), together with other members of the UAE Sustainable Finance Working Group (SFWG), have issued draft "Principles for the Effective Management of Climate-Related Financial Risks" for consultation.
In a statement today (28 March), the working group said it had considered a number of standards in this area published by international standard-setters.
The main one was "Principles for the effective management and supervision of climate-related financial risks" from the Basel Committee on Banking Supervision (BCBS), published in June 2022.
SFWG also took into account the "Guide for Supervisors: integrating climate-related and environmental risks into prudential supervision" from the Network for Greening the Financial System (NGFS), published in May 2020.
The draft principles represent the common understanding among the SFWG members on the standards they expect to see observed in their respective jurisdictions and in line with their legal frameworks in the area of climate risk management.
The principles were endorsed by the entire SFWG, and they are primarily relevant for the financial services sector.
The members of the SFWG further said they welcomed comments on the principles, with a final version to be issued in the second half of 2023, subject to the outcome of the public consultation.
Comments must be submitted by close of business on 1 May 2023.
