Final Guideline On Climate Risk Management And Disclosure For Financial Institutions Issued By OSFI

On March 7, 2023, the Office of the Superintendent of Financial Institutions ("OSFI") issued its first prudential climate-related framework - Guideline B-15: Climate Risk Management (the "Guideline"). The Guideline sets out OSFI's expectations on climate-related risk management and disclosure by federally regulated financial institutions ("FRFIs") such as banks and federally regulated insurers.  The Guideline applies to all FRFIs except foreign bank branches.

The Guideline, which followed a public consultation that generated over 4,300 submissions, will be effective at fiscal year-end 2024 for the six largest Canadian chartered banks¹ ("D-SIBs") and four largest insurers² ("IAIGs") and at fiscal year-end 2025 for all other in-scope FRFIs. However, certain disclosure requirements will not immediately apply.  For example, Scope 1 and Scope 2 greenhouse gas ("GHG") emission disclosure is required beginning at fiscal year-end 2024 for the D-SIBs and IAIGs and at the