Environmental Law & Climate Change Department Report | Communication “B” 12618 of the Central Bank of the Argentine Republic (28.08.2023)
By means of the aforementioned communication, the BCRA will promote a data collection process to assess the exposure to financial risks related to climate change, commonly referred to as physical and transition risks to the local financial system. In its initial stage, the BCRA will carry out a survey for the main entities of the Argentine financial system, considering part of the fundamental ideas that emerged globally within the framework of the standards of Information Reporting related to sustainability and climate dimensions (risks and opportunities) – IFRS – ISSB, S1 and S2-.
The local survey will focus on the group of the largest financial institutions (18 Group A banks) and will cover a sample of a little more than 1,000 companies that take financing in the financial system. Said entities must submit geolocalized information (geographical location) of the main productive units in Argentina and, if applicable, abroad, covering the main sources of income of those legal entities requested by e-mail to the person responsible for the generation and compliance of the information regimes of each entity. The data must be provided at the level of the individual legal entity (not consolidated with subsidiaries and/or related parties) in order to be able to analyze its proximity to areas of the country with different degrees of exposure to locally identified physical risk factors (such as the frequency and amount of rainfall, floods, droughts and heat waves, among others).
Subsequently, in a second stage to be implemented over the next few years, information will be requested on the Greenhouse Gas (GHG) emissions levels of the firms, in order to begin to analyze the transition risks to which the entities are exposed.
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