The Committee plans to issue Pillar 2 guidance in a number of areas to help strengthen banks' practices and help them better prepare for financial shocks that could affect capital adequacy. Areas under consideration include proper asssessment of the risks from offbalance sheet exposures and securitizations, as well as the need to address reputational risk and apply proper stress testing.
Of course, determining which activity really is green or not is already a hard one. Ensuring that countries use a common taxonomy for what qualifies as a "green activity" is a challenge in its own right. Add to that, some small firms do not necessarily have the manpower and the ability to absorb the overhead costs.