Swiss reg' consults on transparency obligations for climate risks
Swiss financial market supervisor Finma has launched a public consultation on transparency obligations around climate risks for financial institutions. The regulator seeks to increase transparency in that area and plans to amend its circulars “Disclosure – banks” and “Disclosure – insurers”. The public consultation on these amendments will take place until 19 January 2021.
The objective is to achieve a proportionate and principle-based structuring of this disclosure, said Finma. Institutions in categories 1 and 2, namely systemically important banks and large insurance companies, are required to make their climate-related financial risks transparent. Their disclosures rely on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). “Already today, a number of banks and insurance companies have undertaken to disclose their climate-related financial risks in accordance with the principles of the TCFD,” Finma notes.