Page 53 - BFSI CHRONICLE 3092022.indd

BFSI Chronicle, 11 Edition September 2022
th

Board’s working group on climate Risk and work what we have discussed in the previous paragraphs.
stream on climate-related Disclosures, Task Force
on climate related Financial Risks set up by the Very Large quantum of resources are required to
Basel committe on Banking Supervision (BCBS) and tackle the climate change issues. According to one
the international platform on sustainable Finance. estimate, India would need around US$ 17.77 trillion
for its transition to a net Zero in due course. This
Based on the experience gained from deliberations indicates huge challanges as well as opportunities
of these forums/organisations, the RBI proposes to for the Financial sector as lenders. Structural changes
suggest strategies to be adopted by the regulated would be needed in the traditional lending and
entities to mitigate climate related risks and develop investment approach to support green financing
guidelines for the integration of climate risk into including evaluation and certification of the green
the existing risk management framework. The RBI credentials of each project.There may be a need
has also undertaken a survey of commercial banks for suitable incentives for taking up such projects
to assess the approach and level of preparedness for development /construction as also lending.
of banks in relation to climate risk and sustainable Interst subvention and similar other incentives can
finance. The report of the said survey has been be considered. Similarly, for mobilising resources
published in July 2022. The survey inter alia has the potential depositors may be required to be
covered topics like risk management, governence, incentivised. Specfic funds/Deposit schemes for
climate related Financial disclosures, HR and investing in green assets may need to be encouraged.
capacity building and green initiatives (internal)
etc. One very important topic covered relates to the There is a cost involved in tackling the challanges
“Opportunities from transition to green future”, of climate change and this cost needs to be borne
which needs to be examined in depth in the context of by the various stakeholders including developers/

The Institute Of Cost Accountants Of India

53