The FSB Chair issued a letter to the G20 Finance Ministers and Central Bank Governors ahead of their July meeting. The letter is focused on issues such as the LIBOR transition, the need for post-pandemic reforms in the area of non-bank financial intermediation, and the need for coordinated action to address financial risks posed by climate change. Along with this letter, FSB has published a report on promoting climate-related disclosures, a report on gaps in data needed to monitor climate-related financial stability risks, and a roadmap for addressing climate-related financial risks.
The roadmap for addressing climate-related financial risks, which was prepared in consultation with the standard-setting bodies and other relevant international bodies, supports international coordination in several ways. The roadmap sets out the work underway and expected to be done by standard-setting bodies and other international organizations in the short and medium term in the following key interrelated areas:
- Firm-level disclosures as the basis for the pricing and management of climate-related financial risks at the level of individual entities and market participants
- Data in the context of use of consistent metrics and disclosures to diagnose climate-related vulnerabilities
- Vulnerability analysis to feed into the design and application of regulatory and supervisory frameworks and tools
- Regulatory and supervisory practices and tools that allow authorities to address identified climate-related risks to financial stability in an effective manner
The roadmap sets out indicative steps, along with the associated indicative timelines, for actions in each of the above-mentioned areas, though each step described to be taken is subject to the outcomes of necessary prior steps being satisfactorily achieved. The time horizon of the roadmap focuses most specifically on actions in the short and medium term (2021–2023), but also indicates the direction and goals of work beyond that time period. The roadmap will allow for flexibility, including across jurisdictions, as priorities will evolve over time. By September 2021, BCBS expects to deliver on development of proposals on the its role in global efforts related to climate disclosure. The roadmap indicates that NGFS will publish, by December 2021, a "How-to guide" for central banks’ climate-related financial disclosure to promote TCFD-aligned disclosure by central banks, allowing them to lead by example. Notably, the roadmap sets out the third quarter of 2022 as an indicative delivery timeline for the International Sustainability Standards Board (ISSB), under the IFRS Foundation, to publish final version of the new sustainability reporting standard (focusing initially on climate).
From 2022 onward, FSB, in coordination with the IFRS, IOSCO, and others, expects to report annually, to the G20, on progress in implementation by jurisdictions and firms of disclosures and reporting in line with the international standards. By October 2022, FSB expects to develop consistent metrics for use in climate-related vulnerabilities monitoring and identify data availability and gaps for metrics. NFGS expects to finalize its work on Climate and Environmental Risk Analysis Methodologies and Metrics in 2022. NGFS expects to follow up work on scenario design and regularly publish sets of reference scenarios, with milestones to be determined at the September 2022 NGFS Steering Committee meeting. IAIS expects to provide guidance on supervisory practices for stress testing and scenario analysis, with work expected to start in September 2021 and possible first deliverables expected in 2022. Following all these deliverables, June 2024 is the indicative timeline for work on development of supervisory macro-prudential tools if needed, either for individual sectors or at the cross-sectoral jurisdiction-wide level.
Keywords: International, Banking, Insurance, Securities, Climate Change Risk, ESG, Stress Testing, Disclosures, Reporting, Roadmap, Data Gaps, TCFD Recommendations, NGFS, BCBS, ISSB, IASB, G20, FSB
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.