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Basel Committee on Banking Supervision

Basel Committee on Banking Supervision Climate-related risk drivers and their transmission channels April 2021 This publication is available on the BIS website ( ). Bank for International Settlements 2021. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISBN 978-92-9259-472-5 (online) Climate-related risk drivers and their transmission channels iii Contents Glossary .. iv Executive Summary .. 1 1. Introduction .. 3 2. Climate-related risk drivers .. 5 The evolution of climate-related risks .. 5 Physical risk drivers .. 6 Transition risk drivers .. 7 Uncertainties related to climate risk drivers .. 9 3. Transmission channels .. 10 Usage of traditional financial risk categories to observe risks .. 10 Microeconomic transmission channels.

activities. These activities include the burning of fossil fuels, deforestation, land use and land-use changes, livestock production, fertilisation, waste management and industrial processes. Basel Framework The Basel Framework is the full set of standards of the Basel Committee on Banking Supervision (BCBS).

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