India to Make Climate Risk Disclosures Mandatory for Banks (1)

The Indian central bank will require lenders to disclose climate finance risks starting in April 2025 and to meet certain climate targets beginning in 2027.

“Inadequate information about climate-related financial risks can lead to mispricing of assets and misallocation of capital by them,” the Reserve Bank of India said in the proposed requirements for a “better, consistent and comparable disclosure framework” for banks and large non-bank financial companies.

The central bank in 2022 had suggested disclosures could be voluntary, but the latest draft makes them mandatory. India was the last among the world’s biggest economies to set a ...