Regulatory Alerts2024-05-10
G2-2024 Guidance on climate-related governance and risk practices for Banks
The Prudential Authority of South Africa issued this guidance to require banks to integrate climate-related physical and transition risks into their governance and risk management frameworks. The document mandates that Boards of Directors exercise active oversight while ensuring risk management processes embed climate exposures into capital adequacy assessments, stress testing, and internal audit functions. Banks must also develop transition plans, maintain compliance with regulatory frameworks, and document their methodologies for supervisory review to safeguard financial stability.
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