On 7 July 2021, the Financial Stability Board (FSB) published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their 9 – 10 July 2021 meeting.
Among other things the letter stresses the need for coordinated action to address financial risks posed by climate change, noting the large, and growing, number of international initiatives underway. The FSB has submitted to the G20 for endorsement a comprehensive roadmap to address climate-related financial risks. The roadmap outlines the work underway and still to be done by standard-setting bodies and other international organizations over a multi-year period in four policy areas: disclosures, data, vulnerabilities analysis, and regulatory and supervisory approaches.
The FSB has also published a report on the availability of data with which to monitor climate-related financial stability risks and remaining data gaps. The report outlines priority areas of work – some of which are already in progress – that should address important data gaps to improve the monitoring and assessment of climate-related risks to financial stability. The report complements the Network for Greening the Financial System (NGFS) work stream on bridging data gaps. The NGFS work stream is undertaking a more comprehensive assessment of the availability of data, including to facilitate the scaling up of green finance.
Another report that the FSB has published concerns the promotion of climate-related disclosures. This report examines the current and planned climate-related disclosure practices across FSB member jurisdictions and sets out high-level guidance to address implementation challenges. As part of its global coordinating role, the FSB undertook work in the first half of 2021 to explore national/regional practices of financial authorities on promoting climate-related disclosures.