Climate Risk Information System:
The Reserve Bank of India proposes to create a data repository namely, the Reserve Bank Climate Risk Information System (RB-CRIS)
- Climate Risk Information System will bridge the gap in climate-related data that is currently available in a fragmented manner.
- Presently the available climate-related data is characterised by various gaps such as fragmented and varied sources, differing formats, frequencies and units.
- It will comprise of two parts
- The first part will be a web-based directory, listing various data sources, (meteorological, geospatial, etc.) which will be publicly accessible on the RBI website.
- The second part will be a data portal comprising of datasets (processed data in standardised formats).
- The RBI plans a phased launch of RB-CRIS starting with the web-based directory, followed by a gradual introduction of the data portal for regulated entities to ensure smooth adaptation.
- It is crucial for regulated entities to undertake climate risk assessments to ensure stability of their balance sheets and that of the financial system.
- On February 28, 2024, RBI issued draft guidelines for a ‘Disclosure Framework on Climate-Related Financial Risks,’ requiring Regulated Entities (REs) to disclose information across four key areas: governance, strategy, risk management and metrics and targets.
- The framework aims to inform stakeholders—such as regulators, investors, and customers—about the climate-related risks faced by REs and their strategies for addressing these issues.
