On May 26, the Office of the Superintendent of Financial Institutions (OSFI) published for comment Draft Guideline B-15: Climate Risk Management (Draft Guideline).

As sets out in the Draft Guideline, federally regulated financial institutions (FRFIs) are required to comply with the following requirements :

• Incorporation of the implications of climate change and the transition to Greenhous Gas Protocol (GHG) economy in their business model and strategy.

Implementation of appropriate governance, policies, and practices

• Incorporation of processes that adequately price climate risk-sensitive assets and liabilities.

• Mitigation of the impact of climate-related disasters on their critical operations

• Use of climate scenario analysis to assess the impact of climate-related risk drivers on their risk profile, business strategy, and business model.

• Maintain sufficient capital and liquidity buffers for its climate-related risks

• Disclosure relevant information (e.g. potential impact of climate-related risks and opportunities on its markets, businesses, corporate or investment strategy, financial statements, and future cash flows).

The disclosures requirements set out in Annexes 2-1 and 2-2 will have to be complied with on or after October 1, 2023.

Comments must be submitted before August 19, 2022.