Regulatory Alerts2023-11-14
Principles for the effective management of climate-related financial risks
The UAE Sustainable Finance Working Group issued these Principles to establish minimum standards for financial services regulators to integrate climate-related financial risks into corporate governance and risk management frameworks. The document outlines seven core principles requiring financial firms to ensure board oversight, incorporate climate risks into business strategies, assign clear management responsibilities, and utilize scenario analysis for capital and liquidity adequacy. Regulators are expected to commence application of these standards by November 2023, with the framework designed to be flexible enough to adapt to evolving international standards and future developments.
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