Action on climate threat “more urgent than ever”: FSB

By James Langton | July 14, 2022 | Last updated on July 14, 2022
1 min read
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Global standards setters have made progress on the monumental challenge of addressing climate-related financial risks, but that threat has only become more urgent, says the Financial Stability Board (FSB).

The global policy group issued its first annual progress report on the roadmap for dealing with climate-related financial risks that it adopted in July 2021.

The report, which examines the work by global standards setters and other international organizations over the past year, concludes that there has been progress in key areas, including improving the quality and utility of climate data, developing disclosure standards and crafting supervisory tools.

That said, the FSB also acknowledged that, one year later, policy action to address climate-related financial risks is “more urgent than ever.”

“The increased frequency and intensity of extreme weather and climate-related events, and the intense debate about current and future energy policies in many jurisdictions, highlight that financial risks related to climate change, including transition risks, are not just a long-term issue or tail event,” it said.

The FSB stressed the need for continued progress on adopting effective risk management practices, building the financial system’s resilience to climate-related risks, and close coordination among countries to ensure effective action.

“[M]ore work needs to be done to enhance our understanding of the financial risks posed by climate change and incorporate that into surveillance, supervision and regulatory practices,” said Klaas Knot, chair of the FSB and president of De Nederlandsche Bank, in a release.

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James Langton

James is a senior reporter for and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.