Transparency about climate-related risks

Transparency about climate-related financial risks at supervised institutions is an important step towards the rational identification, measurement and management of these risks. At the end of May 2021, FINMA therefore clarified the disclosure requirements in the area of climate-related financial risks for significant financial institutions and communicated them in disclosure circulars.
At the end of May 2021, FINMA clarified the disclosure requirements in the area of climate-related financial risks for significant financial institutions. These disclosure requirements came into force on 1 July 2021 and institutions must comply with them starting in 2022. Specific disclosure requirements will deliver greater transparency and comparability of climate-related risks on the balance sheets of the institutions concerned.

The requirements are generally principle-based and proportionate. Their application is limited to the most significant financial institutions (institutions in supervisory categories 1 and 2). Their content is based on the internationally widely recognised recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

In future, the largest banks and insurance companies must describe their material climate-related financial risks and their impact on their business strategy, business model and financial planning. They must also disclose the process for identifying, measuring and addressing these risks (risk management) as well as quantitative data, including a description of the methodology used to collect it. Finally, institutions have to describe the core characteristics of their governance structure in relation to climate-related financial risks. The actual wording of the specific requirements can be found in the disclosure circulars linked below.

As indicated in the consultation on the disclosure requirements, FINMA will conduct an ex-post evaluation to identify whether and to what extent future adjustments to disclosure practice are appropriate.
2016/01 FINMA-Rundschreiben "Offenlegung – Banken" (21.09.2017)

Offenlegungspflichten im Zusammenhang mit den Eigenmitteln und der Liquidität

Updated: 06.05.2021 Size: 3,17  MB
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2016/02 FINMA Circular "Disclosure - insurers" (03.12.2015)

Principles for the financial condition report

Updated: 06.05.2021 Size: 0,46  MB
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