Quebec's Autorité des marchés financiers (AMF) and the Office of the Superintendent of Financial Institutions (OSFI) published the final report of their Standardized Climate Scenario Exercise (SCSE), covering more than 250 Canadian financial institutions, and concluded that climate-related financial risks are unlikely to be an immediate threat but could become more severe over the long term and expose the sector to vulnerabilities. The report points to a need for institutions to strengthen data and modelling capabilities and to integrate climate risk into core decision-making. The 2024 exercise aimed to improve understanding of climate-related financial risks, build capacity to measure those risks, and provide a standardized and comparable view of physical and transition risks across federally regulated and Québec-regulated institutions. For many participants, it was their first climate scenario assessment, and AMF and OSFI plan to use the findings to shape supervisory expectations and risk management guidance, with further work focused on assessing firms’ ability to measure and adequately assess climate- and catastrophe-related financial risks using robust data-driven approaches.
Quebec Autorite des marches financiers 2025-09-11
Quebec's Autorité des marchés financiers and OSFI publish Standardized Climate Scenario Exercise report and will embed findings in supervisory expectations
Quebec's Autorité des marchés financiers and the Office of the Superintendent of Financial Institutions released the final report of their Standardized Climate Scenario Exercise, involving over 250 Canadian financial institutions. The report finds climate-related financial risks are not immediate threats but could become severe long-term, urging institutions to enhance data and modelling capabilities. The findings will inform supervisory expectations and risk management guidance, focusing on data-driven approaches to assess climate risks.