The Network for Greening the Financial System (NFGS) published the second edition of its guide on climate-related disclosures for central banks. The updated guide offers practical support and inspiration to central banks at various stages of their climate-related disclosure journey, from those just starting out to those already advanced in their efforts. With this publication, NGFS reaffirms its support for a robust and internationally consistent climate-related disclosure framework.
The second edition of the guide builds on the experience of NGFS members who have already published climate-related disclosure reports. It takes into account developments in international standards for disclosure and includes a new chapter on metrics and targets to align with the framework of the Task Force on Climate-Related Financial Disclosures (TCFD). The guide also covers disclosure on institutional functions, including monetary policy, supervision, financial stability functions, and provides additional support in disclosure of internal operations. The guide acknowledges that there is no one-size-fits-all solution and presents a range of disclosure options that central banks may choose to follow, depending on their specific circumstances.
One of the key aspects of the guide is the distinction between "baseline" and "building block" disclosure recommendations. The baseline recommendations relate to simpler and/or more foundational pieces of information that central banks “are recommended to” or “should” disclose. In contrast, the building block recommendations relate to more advanced pieces of information that central banks “are encouraged to” or “could” disclose. The guide, which includes headline disclosure recommendations that central banks can use as a guide for their own disclosures, is structured around the below four TCFD-identified themes:
Governance: Disclose the institutional climate-related objectives and decision-making process of the central bank as well as climate-related governance structures for specific areas and functions.
Strategy: Disclose climate-related impacts related to the central bank as well as the strategy – in terms of adaptation, capacity building and communication – for handling these impacts.
Risk Management: Disclose the processes for managing climate-related risks at the central bank, focusing on identification, assessment, and integration.
Metrics and Targets: Disclose metrics and targets relating to the central bank’s management of climate-related risks and exposure to climate-related risks and opportunities.
As a next step, NGFS will explore whether this guide could be adapted to facilitate nature-related risks in the future disclosures. NGFS aims to help central banks navigate the landscape of evolving disclosure frameworks, such as the European Sustainability Reporting Standards (ESRS) and the Standards of International Sustainability Standards Board (ISSB).
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