Canada’s financial watchdog has set rules for assessing and disclosing climate risks.
Under Guideline B-15: Climate Risk Management from the Office of the Superintendent of Financial Institutions (OSFI), banks, insurance companies and other regulated firms will have to publish climate-related financial disclosures at least once a year.
The move was first announced by the Canadian government in 2022. Mandatory reporting of climate-related financial risks will come into effect for larger banks and insurers at the end of 2024’s fiscal year, and for smaller firms in 2025.
The rules aim to balance “the concerns of stakeholders in all regions of Canada and remain in line with the expectations of global and domestic investors who fund Canadian federally regulated financial institutions”, the OSFI said. It added: “Climate change and the global response to the threats it poses have the potential to significantly impact the safety and soundness of the Canadian financial system.”
