On 16 January 2025, the Financial Stability Board (FSB) issued a report on the assessment of climate-related vulnerabilities.
The report is part of the FSB’s Roadmap to Address Climate-related Financial Risks and describes a framework and analytical toolkit to assess climate-related vulnerabilities using a forward-looking approach. It also includes some metrics that can be used to monitor climate-related vulnerabilities from a forward-looking perspective.
The toolkit comprises of three categories of metrics to monitor climate-related vulnerabilities from a forward-looking perspective. These are:
- Proxies to provide early signals on potential drivers of transition and physical risks.
- Exposure metrics to gauge the extent of direct and indirect exposures in the real economy and the financial system.
- Risk metrics to quantify the impacts for financial institutions and the system as a whole.
Going forward the FSB will continue developing its framework to assess climate-related vulnerabilities in the global financial system by:
- Operationalising the toolkit by prioritising further analysis of a subset of metrics from the long list of metrics in the report.
- Conducting analytical deep dives to provide insights on specific types of climate-related vulnerabilities that may have global financial stability implications.