OSFI announces second phase of the Standardized Climate Scenario Exercise consultation

News release -

Today, the Office of the Superintendent of Financial Institutions (OSFI) announced the second phase of the Standardized Climate Scenario Exercise (SCSE) consultation.

The goals of the SCSE are to:

  • increase financial institutions’ understanding of their potential exposures to climate-related risks;
  • build institutions’ capacity to conduct climate scenario analysis and risk assessments; and
  • measure the potential financial exposures to climate-related risks across institutions.

OSFI used feedback from the first phase of the SCSE consultation to update the draft methodology, create a draft workbook along with a set of instructions. A summary of the consultation feedback can be found in the What We Heard report.

Comments on the second phase of SCSE consultation can be sent to ClimateScenario-ScenarioClimatique@osfi-bsif.gc.ca until June 7, 2024.

OSFI is working with the Autorité des marchés financiers (AMF), who will run the SCSE in parallel with their regulated financial institutions in Quebec. Through this collaboration, OSFI and the AMF aim to expand the amount and type of financial institutions submitting results for analysis.

OSFI and the AMF will hold an information session on May 2 at 1:00 p.m. ET. Interested stakeholders can register by May 1 at 12:00 p.m. ET.


“The Standardized Climate Scenario Exercise will encourage financial institutions to adopt sound climate risk management practices. We are proud to collaborate with our colleagues at the Autorité des marchés financiers. Expanding this exercise across Canadian supervisory jurisdictions will create a stronger financial system for all Canadians.”

- Peter Routledge, Superintendent of Financial Institutions

“Financial institutions are exposed to the consequences of climate change. The joint exercise we are launching today with our OSFI colleagues will help institutions be better prepared to manage climate change risks. It will also enable us to take the necessary actions to support financial market stability and the protection of Québec consumers.”

- Yves Ouellet, AMF President and CEO

Quick facts

  • OSFI announced the first phase of the SCSE consultation in October 2023.
    • This two-part process gives stakeholders time to thoroughly review and provide input on all the SCSE materials. It also gives OSFI time to reflect on and consider stakeholder feedback.
  • OSFI and the AMF will only receive results from the respective financial institutions they regulate.
  • Foreign bank branches and federally regulated pension plans are not part of this exercise but are encouraged to take part and provide feedback during the consultation process.
  • Financial institutions can begin work on the SCSE given the following sections of the methodology and instructions are considered final:
    • industry and regional sector classification for transition risks
    • geocoding and regional scope for physical risks.


OSFI – Media Relations