BOJ Proposes Annual Survey on Climate Change Developments
The Bank of Japan (BOJ) launched a consultation on a potential market functioning survey on climate change activities. BOJ aims to assess the functioning of Japanese financial markets in relation to climate change, identify challenges for future developments, and share the results of that survey with relevant stakeholders. BOJ seeks to cover a broad set of market participants such as issuers, investors, financial institutions, and rating agencies in Japan. BOJ. The comment period on the consultation ends on January 31, 2021, with BOJ is seeking comments on the survey topics, the frequency of the survey, and the scope of survey respondents.
BOJ plans to conduct the first round of this annual survey in fiscal 2022, as soon as the necessary preparations have been completed, while taking into account the results of the public consultation. BOJ proposes the following survey topics:
- The way climate-related risks and opportunities are reflected in the prices of financial instruments in the stock market and the corporate bond market in Japan and associated challenges
- The current situation and challenges with respect to the "climate change-related ESG bond market" in Japan
- The use of "climate change-related ESG bonds" by issuers and investors in Japan and associated challenges
"Climate change-related ESG bonds" refers to green bonds, sustainability bonds, sustainability-linked bonds with performance targets related to efforts on climate change, and transition bonds that comply with corresponding international standards and/or the guidelines of the Japanese government.
Comment Due Date: January 31, 2022
Keywords: Asia Pacific, Japan, Banking, Securities, Climate Change Risk, ESG, Sustainable Finance, Green Bonds, BOJ
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
BoE Examines Financial Stability; PRA to Conduct Cyber Stress TestRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets
The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
