Treasury Publishes Draft Climate Transition Planning and Disclosure Framework for Comment

Posted 25 October 2026 Written by Acts Online
Category Financial Sector Regulation

Brought to you by SAnews: National Treasury has published a consultation paper detailing a proposed Climate Transition Planning and Disclosure Framework for financial institutions operating in South Africa.

National Treasury has called on financial institutions, corporates, industry bodies, and regulatory advisors to provide formal input on proposed guidelines aimed at establishing standardised parameters for climate-related risk management, disclosure, and capital allocation across the financial system.

The policy document addresses South Africa’s transition toward a low-emission, climate-resilient economy, noting that required capital mobilisation for climate mitigation, adaptation, and a just transition is projected to average 4.4% of gross domestic product annually through to 2050.

Core Structure of the Proposed Framework

The consultation paper sets out policy proposals structured across three key areas:

  • Conceptual and policy foundations: Outlining the role of transition plans in governing climate risk and opportunities, aligned with international disclosure baselines and emerging regulatory practice.
  • South African context: Assessing the domestic financial sector’s systemic exposure to climate-related risks, alongside current institutional readiness and transition capability.
  • Policy proposals: Setting out a proposed national framework defining core design principles, disclosure metrics, proportionality thresholds, and enabling regulatory conditions for banks, insurers, and asset managers.

The framework highlights that effective transition planning within financial institutions relies on credible disclosures and transition plans from non-financial corporate entities in the real economy. Consequently, future compliance models will require standardised and accessible counterparty emissions and climate risk data.

Written comments on the consultation paper must be submitted to Vukile Davidson via email at [email protected] by no later than 10 December 2026. Submissions should specifically address framework design, proportionality, implementation timelines, and required institutional capacity.

What this means for you, your business, or your clients

  • For yourself: Compliance and sustainability officers must track the consultation to prepare for anticipated statutory reporting mandates and technical transition disclosure standards.
  • For your business: Banks, insurers, and fund managers must assess their current climate risk governance against the paper’s design principles and evaluate operational capacity for institutional transition disclosures.
  • For your clients: Commercial borrowers and corporate clients must prepare for heightened disclosure requests from financial institutions regarding emissions metrics, decarbonisation strategies, and capital allocation alignment.

Originally published at https://www.sanews.gov.za/south-africa/have-your-say-climate-transition-planning-and-disclosure-framework

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