Debate organized by the Convergence for Brazil, a project by O Mundo que Queremos in partnership with iCS, points out the challenges of the new regulation of the Brazilian Central Bank
The Central Bank (BC) has a new regulation with respect to the disclosure of climate risks and their impacts on financial institutions. At an event organized by the Convergence for Brazil, Otávio Damaso, the director of regulations of the BC, guaranteed that there is ongoing internal work of supervision to assess the adaptation of financial institutions to the new rule, which is one of the main regulations in the world to adopt the TCFD (Task Force on Climate Related Financial Disclosures) standards.
According to Luciane Moessa, the executive and technical director of Associação Soluções Inclusivas Sustentáveis (SIS), for banks to be able to effectively assess physical climate risks in their portfolios, it is necessary to know the location of the enterprise and the value chain (whether suppliers or customers). For more accurate information in terms of risks of transition, it is fundamental to understand what companies operating in the same sector do to mitigate the climate risks to which they are exposed.
Brazil, incidentally, has environmental assets that places it in a privileged position, assesses Gustavo Loyola, a former president of the BC and one of the signatories of the Convergence for Brazil. For him, the country is capable of providing green alternatives for the planet in different areas, which could guarantee substantial fundraising for the country in the short term.
Credit: Gustavo Loyola / Transmission Frame
