Central Bank will demand disclosure of climate goals from 2022, says Campos Neto

The president of the Central Bank (BC), Roberto Campos Neto, stated that among the mandatory information that financial institutions will have to disclose on aspects related to the climate from 2022 onwards, there will be metrics and targets.

“The expectation is that financial institutions publish this annual report by June 2023, with information up to December 2022”, said the BC president this Wednesday (10).

Through a recorded video, Campos Neto participated in the event “Mandating private sector climate risk disclosures” (Mandating private sector climate risk disclosures, in free translation), promoted by the Climate Disclosure Standards Board (CDSB) and by the Ministry of Foreign Affairs of New Zealand under the COP26.

“We believe that climate risks pose significant challenges for the future. To deal with these challenges, the Central Bank of Brazil needs to be at the forefront of knowledge and actions, responding to the evolution of society’s demands, structural changes in the economy, and future and current risks of shocks”, said Campos Neto.

“For Central Banks, having a sustainability agenda is important because these issues have the potential to affect two mandates: monetary policy and financial stability,” he continued.

He pointed out that in September the BC already made it mandatory for financial institutions to disclose weather information as part of their financial reports. This first phase, however, will involve only qualitative aspects of the theme, with a quantitative approach planned for next year.

The BC president assessed that climate and environmental issues have long been important topics on the international agenda, but gained even more relevance after the pandemic.

According to Campos Neto, the mandatory disclosures of socio-environmental and climate risks implemented by BC are based on the four core elements of the Task Force on Climate-Related Financial Disclosures (TCFD) recommendation: governance, strategy, risk management, and metrics and objectives .

(*With information from Reuters Agency)