OSFI consults on climate-related risks
OSFI has launched a three-month consultation on addressing climate-related risks in the financial sector.
The consultation will be via a discussion paper, ‘Navigating Uncertainty in Climate Change: Promoting Preparedness and Resilience to Climate-Related Risks.’
According to OSFI, the paper focuses on risks arising from climate change that can affect the safety and soundness of federally regulated financial institutions and federally regulated pension plans (stakeholders). OSFI is interested in how stakeholders define, identify, measure, and build resilience to climate‑related risks.
In November 2020, the Bank of Canada and OSFI had announced plans for a pilot project to use climate-change scenarios to better understand the risks to the financial system related to a transition to a low-carbon economy.
The consultation paper is available here.
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