Regulatory Alerts2025-01-01
Guidelines on Climate-Related Financial Risks Management and Disclosures, 2025
The Bank of Tanzania has issued binding guidelines requiring all domestic banks and financial institutions to integrate climate-related physical and transition risks into their existing governance, risk management, and internal control frameworks. Regulated entities must establish clear board and senior management oversight, implement a three-lines-of-defense model for risk identification and mitigation, and conduct regular scenario analysis and stress testing across short, medium, and long-term horizons. Furthermore, institutions are mandated to disclose comprehensive climate-related metrics and targets—including financed emissions, carbon pricing, and capital allocation—aligned with IFRS S2 to ensure transparency and support strategic decision-making.