Bank towers are shown from Bay Street in Toronto's financial district on Wednesday, June 16, 2010. Canada's bank regulator has issued new guidelines to protect banks, insurance companies and private pension plans against climate-related risks. THE CANADIAN PRESS/Adrien Veczan
OTTAWA – Canada’s bank regulator has issued a framework to guide banks, insurance companies and private pension plans in protecting themselves against climate-related risks.
The Office of the Superintendent of Financial Institutions (OSFI) says climate change has the potential to significantly affect the safety of the Canadian financial system.
It urges federally regulated financial institutions to implement governance and accountability structures that account for those risks.
That means setting aside funds to account for climate-related risks.
The guidelines will take effect in 2024 for large banks and 2025 for other regulated financial institutions.
OSFI says it reviewed 4,300 submissions from a wide range of respondents before publishing the document.
This report by The Canadian Press was first published March 7, 2023.
