In anticipation of a July 9th meeting, a letter from Financial Stability Board (FSB) Chair, Randal K. Quarles to G20 Finance Ministers and Central Bank Governors, was published highlighting remaining risks to financial stability associated with non-bank financial intermediation and money market funds, climate change, and transition away from LIBOR as prominent issues. Notably, the FSB Chair underlined the need for coordinated efforts to address financial risks related to climate change and requested endorsement from the G20 of a roadmap tasked with undertaking 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 key policy areas: disclosures, data, vulnerabilities analysis, and regulatory and supervisory approaches.”
On July 7, 2021, the FSB published three climate-related reports:
- “The FSB roadmap for addressing climate-related financial risks.
- A report on availability of data with which to monitor climate-related financial stability risks and remaining data gaps.
- A report on promoting climate-related disclosures.”
More information is available on the FSB Chair’s letter to the G20 and Central Bank Governors here.