Yi Gang: the people's Bank of China plans to implement a system of compulsory disclosure of climate information.

The people's Bank of China will support the development of a standardized international climate reporting framework, further improve the classification of green bonds with the European Union and the United States, and plan to implement mandatory disclosure of climate-related information, urge major domestic commercial banks to disclose carbon information, and then supervise the relevant disclosure activities of domestic listed companies.

Mr Yi, who attended the 2021 Green Swan meeting organised by the Bank for International Settlements (BIS) yesterday, said the PBoC was working closely with the Financial Stability Council (FSB) to encourage domestic banks and institutions to join the working Group on Climate-related Financial Disclosure (TCFD). The people's Bank of China is now cooperating with the European Union on green loans and green bonds, while further disclosing climate-related information under the framework of TCFD.

He said that China's domestic green bond standards are 80% consistent with EU standards, and the people's Bank of China will explore internationally recognized standards. at the same time, the central bank plans to implement mandatory disclosure of climate-related information, urge major domestic commercial banks to disclose carbon information, and then urge domestic listed companies to disclose relevant information.

Yi Gang pointed out that in the financial sector, Chinese banks will continue to conduct climate stress tests to measure climate-related risks. With regard to the G-7 leaders' meeting in the UK next week and the G20, he hopes that countries can reach an information disclosure standard by the end of this year.

In order to identify and assess the institutions most vulnerable to climate change, the people's Bank of China has begun climate stress tests on China's financial system, but the results of the analysis have not yet been released, he said.

Yi Gang said that the results of climate risk assessment will be disclosed in due course in the future, and commercial banks have already begun to assess them in pilot projects, such as macro-prudential policies, while the former is gradually realizing the importance of climate change. The people's Bank of China is trying to evaluate the green and brown assets of commercial banks and may consider risk weighting based on the greenness of the assets in the future. The deadline for the green transformation of commercial banks will be determined in the future, but the transformation needs to be carried out smoothly to avoid a crisis caused by sudden actions.