The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have established a blueprint for a platform that integrates regulatory and climate data to help financial authorities identify, monitor, and manage climate risks in the financial system.

Integrating climate risk analysis into financial stability surveillance is challenging due to the complex nature of climate change, significant data gaps and limited understanding of how to measure the associated risks, MAS and BIS say in a statement.

To help tackle this challenge, the blueprint, “Project Viridis”, lays out the key features and metrics required for a climate risk platform.

These incorporate data and information on financed emissions, physical risk exposure, and forward-looking assessments under different climate scenarios.

“As the impact of climate change on the global financial landscape intensifies, the need for adaptive and forward-thinking strategies has never been more urgent,” says Maha El Dimachki, head of the BIS Innovation Hub Singapore Centre. “Project Viridis helps equip financial authorities with the insights needed to integrate emerging climate risks into their analysis – and thereby help promote global financial stability.”

The new platform draws on technology architecture developed by the BIS Innovation Hub Singapore Centre and MAS, enhanced in collaboration with other financial authorities worldwide.

“Project Viridis is an innovative, collaborative blueprint that leverages technology solutions to systematically track climate-related data and metrices, thereby augmenting regulators’ efforts in assessing physical and transition climate risk exposures of individual banks and the financial system, and it addresses a common need of global financial authorities,” adds Celine Sia, assistant managing director (economics and knowledge management), at MAS.