OSFI B-15 Guideline — Climate Risk Management

Effective date:

The updated Guideline and Climate Risk Returns are effective fiscal year-end 2024 for domestic systemically important banks and internationally active insurance groups headquartered in Canada.

For all other in-scope FRFIs, the Guideline and Climate Risk Returns will become effective fiscal year-end 2025.
Pub­lished by the OSFI:

March 2024

Overview

Guideline B-15 establishes the expectations of the Office of the Superintendent of Financial Institutions (OSFI) related to the federally regulated financial institutions (FRFIs) management of climate-related risks. It aims to support FRFIs in developing greater resilience to, and management of, these risks. The Guideline applies to all FRFIs except foreign bank branches.

There is no one-size-fits-all approach for managing climate-related risks given the unique risks and vulnerabilities that will vary with a FRFI’s size, nature, scope, and complexity of its operations, and risk profile. The Guideline should be read, and implemented, from a risk-based perspective that allows the FRFI to compete effectively while managing its climate-related risks prudently.

History of Guideline B-15

Date

Development

Comments

March 7, 2023

Release of Guideline B-15

The Guideline is OSFI’s first prudential framework that is climate sensitive and recognizes the impact of climate change on managing risk in Canada’s financial system.

March 20, 2024

Updates to Guideline B-15 ensure that the expectations for FRFIs align with IFRS S2 Climate-related Disclosures standard.

This streamlines climate disclosures and promotes transparency of climate-related risks.

The above summary does not include details of consequential amendments made as the result of other projects.

Amendments under consideration

  • None

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