2023-04-21 04:45:21
Canada’s environment commissioner stressed on Thursday that the federal banking regulator’s action on climate change is long overdue and must now be “taken with urgency.”
In an audit released Thursday, Commissioner Jerry DeMarco said it was encouraging that the Office of the Superintendent of Financial Institutions (OSFI) recognizes the risks of climate change to banks and the financial system and is taking steps to address this challenge. He noted, however, that as climate change only recently became a priority for the regulator, full implementation of the strategy would not take place for several years.
Mr. DeMarco also felt that OSFI’s plan to improve the resilience of banks and other financial institutions to climate change was falling short of actually encouraging the transition to a carbon-neutral economy.
In particular, the Commissioner recommended that OSFI define clearer guidelines regarding the information that banks must disclose in their transition plans in order to avoid greenwashing.
The agency accepted the auditor’s five key recommendations, noting that it plans to release strengthened climate change disclosures this year and will continue to refine its disclosure expectations.
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