The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have created a blueprint for a platform designed to integrate regulatory and climate data, aiding financial authorities in identifying, monitoring, and managing climate risks within the financial system.
Named Project Viridis, the plan outlines essential features and metrics necessary for a climate risk management platform. This includes data concerning financed emissions, physical risk exposure, and forward-looking assessments across various climate scenarios.
Celine Sia, assistant managing director of MAS, remarks, "Project Viridis showcases the integration of regulatory data and climate data, which is gathered from corporate disclosure documents using natural language processing techniques. This provides authorities with insights into climate-related financial risks, allowing them to gain initial perspectives on the risk exposures of financial institutions and pinpoint areas that may warrant more comprehensive risk assessment."
The foundational architecture of the Viridis platform is built on the Ellipse Data and Knowledge Platform (EDKP), which was developed by the BIS Innovation Hub Singapore Centre and MAS as part of Project Ellipse. The EDKP facilitates the integration of both structured and unstructured data from multiple sources and is currently being updated with new data from over 15 central banks and financial regulators globally.
Learn more about the latest innovations in the sustainable finance sector at Finextra’s annual Sustainable Finance Live conference, scheduled for 8 October 2024.