Finma launches consultation on climate risk transparency for financial sector
The Swiss Financial Market Supervisory Authority has launched a consultation over increasing transparency around the threats associated with climate change. Justin Pugsley reports.
The Swiss Financial Market Supervisory Authority (Finma) is consulting over financial institutions’ transparency in light of the threat of climate change.
The significant threat climate change poses to financial institutions over the long term has prompted Finma to launch a consultation over increasing transparency around the issue.
The supervisor said financial institutions have been displaying varying levels of transparency around climate-related financial risks.
To increase transparency, Finma is setting out more comprehensive and consistent climate-related disclosure requirements for financial firms. The aim is to collect adequate data to analyse those risks in order to promote comparability and market discipline.
Systemically important banks and large insurance companies are required to make their climate-related financial risks transparent. The reporting requirements are based on the Task Force on Climate-related Financial Disclosures (TCFD).
The current consultation follows a Finma preliminary consultation last summer to collect suggestions from financial firms and other stakeholders. Feedback for the consultation closes on January 19, 2021.
