The Office of the Superintendent of Financial Institutions (OSFI) has recently released new guidelines for Canadian banks to better manage and assess climate-related risks.
Canada’s major banks and insurance companies will be required to conduct stress tests and disclose key aspects of their climate change risk management plans by the end of next year.
These guidelines require banks to regularly evaluate and identify climate risks and develop plans of action to manage them. Additionally, banks are expected to provide more information about their exposure to climate-related risks and how they plan to mitigate them.
This is great news. Finally, regulators are taking concrete steps to address the growing threat of climate change and ensure that our financial institutions are better prepared for the challenges ahead. We recently discussed this topic in our Climate Finance Regulation around the World webinar with our North American representative, Matthew Ayearst.
The replay is still available on our Youtube channel.