Canada Financial Watchdog Releases Draft Climate Risk Approach

The Office of the Superintendent of Financial Institutions released a draft version of a methodology for financial institutions to understand their potential climate-related risk, as part of a consultation process.

• The regulator seeks feedback about its Standardized Climate Scenario Exercise (SCSE) methodology by Dec. 16
• “The SCSE aims to increase federally regulated financial institutions’ understanding of their potential exposures to climate-related risks,” OSFI said on its website Monday. “It also aims to build their capacity to conduct climate scenario analysis and risk assessments.”

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Esteban Duarte in Toronto at eduarterubia@bloomberg.net

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