Regulatory Alerts2025-12-01
Bank of Uganda Guidelines for the Management of Climate-related Financial Risks 2025
The Bank of Uganda mandates all supervised financial institutions to formally integrate climate-related financial risks into their corporate governance structures, risk management frameworks, and strategic planning processes. Institutions must establish board-level oversight, embed climate risk assessments across all three lines of defense, and quantify exposures through stress testing, scenario analysis, and internal capital adequacy assessments. The guidelines further require supervised entities to develop climate transition plans, enhance risk data aggregation capabilities, and align disclosure practices with IFRS S2 standards to ensure sector resilience by the December 2025 effective date.
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