Quebec's Prudential Regulator Releases Climate Risk Management Guideline

Quebec's prudential regulator, the Autorité des marchés financiers ("AMF"), published its draft Climate Risk Management Guideline (the "Guideline") for public comment on November 30, 2023. The AMF is the most recent among a growing number of Canadian prudential financial regulators providing guidance on climate risks to financial institutions. The objective of the Guideline is to bolster the resilience of Quebec financial institutions and the financial sector as a whole in the face of increasing climate risk and uncertainty. Comments on the Guideline can be submitted to [email protected] until January 30, 2024.

The Guideline applies to authorized insurers, financial services cooperatives and credit unions, authorized trust companies and other authorized deposit institutions, regardless of size, nature, complexity or risk profile. These institutions are expected to consider climate-related risks in their risk management processes, including