FSB Report on Approaches to Climate-Change Risks

The Financial Stability Board recently announced its publication of an interim report, “Supervisory and Regulatory Approaches to Climate-related Risks,” that aims to assist supervisory and regulatory authorities in developing their approaches to monitor, manage, and mitigate cross-sectoral and systemwide risks arising from climate change and to promote consistent approaches across sectors and jurisdictions. Its recommendations focus on three areas:

• Supervisory and regulatory reporting and collection of climate-related data from financial institutions
• Systemwide supervisory and regulatory approaches to assessing climate-related risks
• Early consideration of other potential macroprudential policies and tools to address systemic risks

The FSB is inviting comments on its recommendations through June 30, 2022. The report includes a set of questions for this purpose. The final recommendations, incorporating feedback from the public consultation, will be published in the fourth quarter of 2022.