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.