27 The TFCR is mapping the transmission channels and studying the measurement methodologies of climate-related financial risks to the banking system. It will also examine the extent to which climate-related financial risks are incorporated in the existing Basel Framework. Based on this analysis, the TFCR is charged with and is developing recommendations for effective supervisory practices to mitigate climate-related financial risks.
28  /media/boe/files/prudential-regulation/supervisory-statement/2019/ss319; Bank of England, Prudential Regulatory Agency Letter, “Managing the Financial Risks from Climate Change, July 19, 2020, https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/letter/2020/managing-thefinancial-risks-from-climatechange.pdf?la=en&hash=A6B4DD1BE45B2762900F54B2F5BF2F99FA448424; and European Central Bank, Banking Supervision “Guide on climate-related and environmental risks: Supervisory expectations relating to risk management and disclosure,” November 2020, https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.202011finalguideonclimaterelatedandenvironmentalrisks~58213f6564.en.pdf.