For immediate release
OTTAWA ─ March 7, 2023 ─ Office of the Superintendent of Financial Institutions
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. Today, the Office of the Superintendent of Financial Institutions (OSFI) published Guideline B-15: Climate Risk Management, which sets out OSFI’s expectations for the management of climate-related risks.
The Guideline is OSFI’s first prudential framework that is climate sensitive and recognizes the impact of climate change on managing risk in Canada’s financial system. Two chapters currently comprise the guideline: Governance and Financial Disclosures. OSFI intends to review and amend this Guideline as practices and standards evolve.
The publication of Guideline B-15 follows one of the most extensive consultations in OSFI’s history. OSFI received over 4,300 submissions from a wide range of respondents, including Federally Regulated Financial Institutions (FRFIs). Four key themes characterized respondent feedback:
- OSFI’s approach to climate-related risks;
- OSFI’s expectations related to climate-related financial disclosures;
- The importance of incorporating proportionality and materiality considerations into the guideline; and
- The adequacy of climate-related capital and liquidity requirements.
OSFI’s responses to the feedback received can be found in the consultation summary.
The Guideline will be effective fiscal year-end 2024 for Domestic Systemically Important Banks (DSIBs) and Internationally Active Insurance Groups (IAIGs) headquartered in Canada. For all other in-scope FRFIs, the Guideline will become effective at fiscal year-end 2025.
OSFI will hold an information session on March 20 at 1:00 p.m. ET. FRFIs, industry associations, those that submitted responses during the consultation, and other interested stakeholders can register by March 16.
To read the full News Release visit https://www.osfi-bsif.gc.ca/Eng/osfi-bsif/med/Pages/b15-nr.aspx