Swiss FINMA supervision obliges banks and insurers to disclose climate risks
Large Swiss banks and insurance companies will have to provide qualitative and quantitative information on the risks they face as a result of climate change, Swiss financial watchdog FINMA said on Monday when issuing an amendment. publication on disclosure.
FINMA’s updated circular on the new bonds, due to go into effect on July 1, follows similar initiatives by the European Central Bank, which last year announced its intention to ask lenders to monetary union of 19 countries to disclose their climate-related risks.
The Swiss watchdog said it was fulfilling its strategic objective of contributing to the sustainable development of the Swiss financial center, explaining how it will oversee banks and insurers on climate-related financial risks.
FINMA said it developed the disclosure requirement after speaking with industry representatives, academics, NGOs and the federal government last year. The watchdog previously said risks such as natural disasters are important to the industry and deserve new disclosure standards.
“Banks and insurance companies are required to adequately inform the public about their risks,” FINMA said in a statement. “These also include the consequences of climate change, which could pose significant financial risks for financial institutions in the longer term.”
Credit Suisse (CSGN.S) has been in the crosshairs of climate activists, including protesters who blocked access to its Zurich headquarters over complaints about its funding of fossil fuel-related projects. Reinsurer Swiss Re (SRENH.S) said in April that the global economy could lose nearly a fifth of its economic output by 2050 if the world fails to bring climate change under control. Read more
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