Regulatory Alerts2025-09-19
Climate-related Financial Risk Management Regulation
The Central Bank of the UAE issued this Regulation to establish a comprehensive framework requiring Financial Institutions to implement robust governance and risk management processes for identifying and managing climate-related financial risks. The document mandates that Boards and Senior Management maintain adequate oversight, integrate climate risks into risk appetite frameworks, and ensure strategic alignment with the UAE's net-zero commitments. It further requires institutions to assess impacts across short, medium, and long-term horizons, apply proportionality principles, and maintain strict governance over green and sustainable products.
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