FSB has launched a consultation on supervisory and regulatory approaches to monitor, manage and mitigate risks arising from climate change.
FSB recommendations include:
- supervisory and regulatory reporting and collection of climate-related data from financial institutions. Consistent and comparable firm disclosures provide a good starting or reference point for the future development of regular standardised regulatory reporting requirements. Authorities may require more granular and specific information for supervisory or regulatory purposes.
- system-wide supervisory and regulatory approaches to assessing climate-related risks. Risk assessments and policies must incorporate understanding of the channels through which climate-related risks to financial institutions may be transferred across sectors or borders.
- early consideration of other potential macroprudential policies and tools to address systemic risks. Microprudential tools alone may not sufficiently address the cross-sectoral, global and systemic dimensions of climate-related risks.
The consultation closes on 30 June 2022 and the final recommendations will be published in Q4 2022.