Transparency about climate-related risks

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 since 2022. Specific disclosure requirements will deliver greater transparency and comparability of climate-related risks 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).

Subsequently, 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 information, including a description of the methodology used. 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.

In 2024 FINMA carried out an ex-post evaluation of the disclosure requirements and took into account the various developments in the area of climate and sustainability reporting. FINMA's principle-based disclosure requirements remain compatible with the ordinance of the federal council as well as with other international frameworks and standards. A revision of the requirements is therefore, as well as due to ongoing developments, currently not needed and will be reassessed at a later stage.