Promoting Preparedness and Resilience to Climate-Related Risks

Document Properties

  • Type of Publication: Letter
  • Date: January 11, 2021
  • To: Federally Regulated Financial Institutions (FRFIs) and Federally Regulated Pension Plans (FRPPs)

OSFI is releasing a discussion paper on climate-related risks that can affect the safety and soundness of federally regulated financial institutions (FRFIs) and federally regulated pension plans (FRPPs).

The objective of OSFI's work in this area is to promote better preparedness for, and resilience to, climate-related risks before they negatively affect the financial condition of the financial institutions and pension plans it regulates. It may also inform the potential need for OSFI guidance in this area.

The discussion paper considers how climate-related risks can drive financial, operational, strategic and reputation risks of FRFIs and FRPPs. The paper shares OSFI insights on possible prudential tools for enhancing preparedness and resilience to these risks. This includes a discussion of the respective roles of capital requirements, the supervisory review process and market discipline in promoting resilience to climate-related risks.

OSFI invites comments and responses to the questions contained in the discussion paper. Submissions should be provided to OSFI by email at by April 12, 2021.

Yours truly,
Ben Gully
Assistant Superintendent
Regulation Sector