Legal & Regulatory News

FSB publish roadmap for addressing climate-related financial risks

On 7 July 2021, the Financial Stability Board (FSB) published a roadmap, ‘Roadmap for addressing climate-related financial risks’ (the Roadmap) which will be presented to the G20 Finance Ministers and Central Bank Governors for their endorsement on 9-10 July 2021.

This Roadmap, which was prepared by the FSB in consultation with standard-setting bodies and other relevant international bodies, is intended to support international coordination in several ways.

• it promotes relevant initiatives at standard-setting bodies, the Network for Greening the Financial System and other international organisations;
• it presents relevant ongoing and planned international work in one place, it helps to identify gaps to be covered by further work, limit overlap and promote synergies;
• it sketches out how the FSB can serve as a forum for discussing cross-sectoral and systemic issues and agreeing a way forward; and
• it provides input into broader international policy considerations by facilitating communication with the G20, G7 and COP26.

The Roadmap focuses on four main, interrelated areas: firm-level disclosures, data, vulnerabilities analysis, and regulatory and supervisory practices and tools. The roadmap examines each of these areas in turn, including identifying the relevant goal for each of these areas, the main challenges for achieving it, and key milestones for each of the four areas in light of the progress made so far

In an accompanying letter, the FSB stresses the need for co-ordinated action to address the financial risks associated with climate change as well as the elevated risk to financial stability resultant from the COVID-19 pandemic.

Click here to access the FSB Roadmap.