Getting ready for the ECCBs new climate-related and environmental risk requirements

1. The Eastern Caribbean Central Bank has issued a new Prudential Standard, effective 1 March 2024, which mandates certain climate-related and environmental risk considerations and disclosures for all Licensed Financial Institutions (“LFIs”) within the Eastern Caribbean.
2. The Eastern Caribbean Central Bank has noted that this Prudential Standard (“the Standard”) seeks to ensure that LFIs are better prepared to address risks related to climate change. The Standard also aligns and ensures consistency of regional reporting with the Basel Committee on Banking Supervision’s principles for effective management and supervision of climate-related financial risks.
3. It will be critical for LFIs in the region or with operations in the Eastern Caribbean to understand the following about the Standard:
   

• What are the specific requirements? 
• What is the anticipated impact on your entity's existing risk management and related processes?
  
• Is your entity prepared for the disclosure and reporting requirements being imposed?
• What will you need to do next to prepare for compliance?

To assist LFIs in understanding the requirements of the Standard, KPMG is pleased to release the attached fact sheet on the Prudential Standard. This fact sheet outlines the Standard's requirements, how we are committed to helping regional institutions on their journey to more effective management and reporting of climate-related and environmental risks, and the supporting services we offer, as LFIs work towards compliance.