Regulatory Alerts2022-04-01
Guideline on Climate-related and Environmental Financial Risk Management
The Bank of Mauritius mandates all licensed banks and non-bank deposit-taking institutions to integrate climate-related and environmental financial risks into their existing governance, risk management, and strategic decision-making frameworks. Financial institutions must establish board-approved policies, implement three-lines-of-defence risk identification and measurement processes, conduct regular scenario analysis and stress testing, and submit internal roadmaps alongside half-yearly progress reports. The guideline further requires annual public disclosures detailing governance structures, risk strategies, key metrics against environmental targets, and the financial impact of physical and transition risks on credit, market, liquidity, and operational exposures.