Climate Risk Information System

About Climate Risk Information System:

• It will bridge the gap in climate-related data that is currently available in a fragmented manner.
• Presently the available climate related data is characterised by various gaps such as fragmented and varied sources, differing formats, frequencies and units. 
• It will comprise of two parts

o The first part will be a web-based directory, listing various data sources, (meteorological, geospatial, etc.) which will be publicly accessible in the RBI website.

o The second part will be a data portal comprising datasets (processed data in standardised formats).

• The RBI plans a phased launch of RB-CRIS starting with the web-based directory, followed by a gradual introduction of the data portal for regulated entities to ensure smooth adaptation.
• It is crucial for regulated entities to undertake climate risk assessments for ensuring stability of their balance sheets and that of the financial system. 
• On February 28, 2024, RBI had issued draft guidelines for a 'Disclosure Framework on Climate-Related Financial Risks,' requiring regulated entities (REs) to disclose information across four key areas: governance, strategy, risk management, and metrics and targets.
• The framework aims to inform stakeholders—such as regulators, investors, and customers—about the climate-related risks faced by REs and their strategies for addressing these issues.

Q1: What is Climate change?

It refers to long-term shifts in temperatures and weather patterns. Such shifts can be natural, due to changes in the sun's activity or large volcanic eruptions.

Source: RBI announces creation of Climate Risk Information System