Starting in December of this year, Brazilian financial institutions will need to measure the impacts of climate change on their businesses. This is because the Central Bank (Bacen) will begin to require the inclusion of climate risks in the risk and capital management of banks, as well as the development of social, environmental and climate responsibility policies and an annual report with information on the subject.
This October, the Bacen is expected to present in its Financial Stability Report (REF) references for institutions to follow in the preparation of their estimates.
In the document, details on how institutions will have to calculate reflections of an extreme drought over their services and assets, as well as a study on transition risks, should be found.
H•Naves Advogados is following the matter and will bring news as soon as the Central Bank discloses more information on the subject! Follow our networks to learn more!
