Speakers
Objectives
Sustainability risks are becoming increasingly material for the financial sector, yet policy and regulatory responses remain fragmented across jurisdictions. Climate-related risks combine long-term transition challenges with near-term physical shocks and geopolitical disruptions, creating systemic vulnerabilities that financial institutions and supervisors must anticipate. While initiatives such as the Basel Committee’s voluntary climate disclosure framework, NGFS short-term scenarios, and EU measures under Solvency II and CSRD provide valuable tools, they also raise concerns about regulatory complexity, inconsistent expectations, and operational capacity—especially for smaller players. This session will assess how supervisors and firms can integrate climate risks into governance, scenario analysis and disclosure practices while avoiding fragmentation, reporting fatigue, and disproportionate burdens. It will also explore how global coordination can be enhanced to ensure coherence and comparability, while enabling effective risk management in a rapidly evolving environment.
Points of discussion
- How are short- and long-term climate-related risks reshaping prudential priorities, and what gaps remain in aligning supervisory approaches globally?
- To what extent do international initiatives (e.g. NGFS, BCBS, IAIS) foster convergence on sustainability risk, and how can regulatory fragmentation and reporting fatigue be mitigated?
- How can scenario analysis, disclosure frameworks, and supervisory expectations be translated into practical governance and risk management, particularly for smaller firms with limited resources?