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How Has Supervision Responded to Climate Change-Related Financial Risks?

How Has Supervision Responded to Climate Change-Related Financial Risks?

Year Published

2020

Contributing Organizations

International Monetary Fund (IMF)
Global Affairs Canada (GAC)
Toronto Centre
The Swedish International Development Cooperation Agency (Sida)

Type of Resource

Research/Insights Report
Tool

Languages

English

Relevant Topics

Core Topic
Risk Management
Topic 2
Climate Reporting

Target Audience

All

Relevant Geography

Global
How Has Supervision Responded to Climate Change-Related Financial Risks?

Resource Description

This resource outlines international initiatives on climate change-related financial risks and sustainable financing and highlights specific areas national supervisory authorities should be focusing on.

Why This Matters

Climate change is rapidly emerging as a threat to financial system stability. Supervisors have a critical role to play in assessing and managing its impacts on financial institutions, assets, and markets.

Key Insights

  • Outlines the international frameworks on climate risks in financial systems, with information on key regulations and guidance from various networks
  • Explains supervisory responses to climate change-related financial risks such as mandates, risk management and climate stress testing, using case studies and examples for each response

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