MNB prepares climate-related financial disclosure

MNB

Image by Jessica Fejos

The National Bank of Hungary (MNB) is among the first central banks and domestic financial institutions to publish its Climate-related Financial Disclosure (TCFD), the MNB said on Monday, according to a report by state news wire MTI.

The aim of the report is to identify, measure and publish climate risks related to the MNB's operational activities and financial instruments as widely as possible and in a transparent manner, thereby providing guidance to the participants of the domestic financial sector.

In preparing the disclosure, the NBH relied primarily on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) established by the G20 Financial Stability Board.

As climate change has implications for price stability, financial stability, and sustainable development, it is an issue that central banks need to address as a matter of priority, MNB said in the statement.

A green transition is inconceivable without measurement, it said, as transparency is a fundamental condition for environmental sustainability, both in terms of the starting point and of measuring the impact of the actions taken.

Given the importance of the financial sector, MNB, as the monetary and financial supervisory authority, has a key role to play in this respect. Since the summer of 2021, it has been explicitly stated in the Act on the Central Bank that MNB supports the achievement of environmental sustainability, while price stability is the primary objective, the central bank said. 

MNB plans to publish its Climate-related Financial Disclosure annually, encouraging domestic financial and public sector actors to follow suit.

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