The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have collaboratively launched Project Viridis, a pioneering blueprint aimed at integrating regulatory and climate data to help financial authorities better identify, monitor, and manage climate risks within the financial system.
Key Features of Project Viridis
Project Viridis outlines a comprehensive climate risk platform, encompassing critical metrics and features for assessing financial risks tied to climate change. The platform integrates data on financed emissions, physical risk exposure, and forward-looking assessments under various climate scenarios. This innovative approach leverages both structured and unstructured data sources to provide a holistic view of climate-related financial risks.
Advanced Data Integration
At the heart of Project Viridis is the Ellipse Data and Knowledge Platform (EDKP), a foundational architecture developed by the BIS Innovation Hub Singapore Centre and MAS under Project Ellipse. The EDKP integrates data from over 15 central banks and financial regulators globally, utilizing advanced natural language processing techniques to extract and analyze climate data from corporate disclosure documents.
Insights from Regulatory and Climate Data
Celine Sia, Assistant Managing Director at MAS, explains, “Project Viridis demonstrates how regulatory data can be integrated with climate data, providing authorities with insights into climate-related financial risks. This integration helps form an initial view of financial institutions’ risk exposures and identifies areas requiring deeper risk assessment.”
Enhancing Climate Risk Management
The blueprint for Project Viridis represents a significant step forward in climate risk management, enabling financial authorities to proactively address climate risks and enhance the resilience of the financial system. By incorporating advanced data analytics and integrating diverse data sources, the platform empowers regulators to make informed decisions and take timely actions to mitigate climate risks.
A Global Collaborative Effort
The successful implementation of Project Viridis is a testament to the global collaboration between financial regulators and institutions. By sharing data and best practices, BIS and MAS are setting a new standard for climate risk assessment and management in the financial sector.
For more information on the BIS and MAS initiatives and the detailed blueprint of Project Viridis, visit the BIS and MAS websites.
