Decoding RBI’s Climate Disclosure Mandate: A Leap Towards Financial Sustainability?
- Indian Journal of Law and Legal Research
- Feb 4
- 1 min read
By Mahek Harichandan
ABSTRACT
The Reserve Bank of India (RBI) has recently introduced a climate disclosure mandate aimed at enhancing financial transparency and promoting sustainability within the financial sector. This paper delves into the implications of this mandate, examining its potential to foster financial stability and resilience in the face of climate-related risks. It begins with an overview of the global shift towards climate-related financial disclosures and the rationale behind such initiatives. The paper then analyses the structure and specific requirements of the RBI's mandate, highlighting its alignment with international frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD).
The core analysis focuses on the Indian context, exploring how this mandate can address unique challenges faced by the Indian economy, including high climate vulnerability and the need for sustainable development.
The conclusion synthesises the findings, arguing that while the RBI’s climate disclosure mandate represents a significant step towards integrating sustainability into financial practices, its success will depend on effective implementation and continuous stakeholder engagement. Recommendations for enhancing the mandate’s impact are provided, emphasising the need for robust monitoring, capacity building, and policy coherence. Overall, this paper underscores the critical role of climate disclosures in achieving long- term financial sustainability and resilience.
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