International coordination on sustainability issues

The risks related to climate change to financial institutions and the financial system, as well as investor protection in connection with sustainability topics, are priority issues at the most important international standard-setting bodies in the financial market sector. FINMA welcomes the development of internationally coordinated solutions and is actively involved in this work.

Climate risks and other sustainability topics have become priority issues at most of the international standard-setting bodies in the financial market sector. As well as initial analyses of the impact of climate change on financial institutions and financial stability, various bodies are developing practical recommendations and guidance for financial institutions and supervisory authorities on how to address these risks. The efforts to develop internationally coordinated disclosure requirements for climate-related risks are another important contribution. The question of whether action needs to be taken in connection with incorporating climate-related financial risks (or other sustainability topics) into the existing frameworks of the standard-setting bodies is also being looked at.

FINMA welcomes the development of internationally coordinated solutions and is actively involved in this work, for example as part of the Financial Stability Board (FSB), as a member of the Basel Committee’s Task Force on Climate-related Financial Risks (TFCR) and the Sustainable Finance Task Force of the International Organization of Securities Commissions (IOSCO), as well the work on climate risks of the International Association of Insurance Supervisors (IAIS). FINMA also uses its membership of the Network for Greening the Financial System (NGFS) to contribute its supervisory perspective, establish contacts with foreign supervisors and strengthen its expertise. FINMA coordinates its international activities with the Federal Department of Finance and the Swiss National Bank.