The Report dated as of June 2022, outlined the measures implemented to date by financial institutions to tackle climate change risks.
The Report focuses on the action taken in relation to (i) the importance given to climate change risks (ii) the assessment of climate change risk (iii) climate change-related governance and business processes; as well as (vi) the framework and climate change risk disclosure.
Highlights of the key measures implemented:
Incorporation of ESG factors into organizational practices, including investment policies, in order to promote a responsible investment strategy and respond to investors demand.
Assessment of climate change risks with a strong focus on physical risks in comparison to transition risks.
Risk management reporting to the board that incorporates the various elements relating to climate change risks. Board of directors are kept informed of key developments in the integration of ESG factors and climate change-related regulatory changes through periodic updates to their risk management reports.
Enhanced disclosure to the regulator and the public as per Task Force for Climate related Financial Disclosures (“TCFD”) (publicly disclosed mainly in the section of the annual report).
Implementation of a sound climate change risk governance and management,
Use of climate stress testing or climate scenario analysis.
The information provided in the Report is representative of all financial institutions carrying on business in Québec except chartered banks.