Thank you, Mr. Chair and members of the committee.
My name is Stephane Tardif and I'm the managing director of OSFI's climate risk hub. I'm joined by my colleague Theresa Hinz, executive director of OSFI's regulatory affairs directorate.
OSFI is mandated to ensure the financial soundness and operational resilience of the institutions under its supervision. We are responsible for the prudential regulation and supervision of federally regulated financial institutions and federally regulated private pension plans. We supervise FRFIs with respect to their governance, solvency, liquidity, safety, soundness and operational resilience.
It's my pleasure today to update you on OSFI's progress towards addressing the commissioner's five recommendations regarding the supervision of climate-related risks.
In March, we published guideline B-15, which sets clear prudential expectations for the management of climate-related risks by federally regulated financial institutions. It also communicates expectations for climate-related financial disclosures and transition plans that consider both physical risks and transition risks.
In June, to increase the breadth of our public outreach on climate, OSFI launched the climate risk forum to continue raising awareness and building capacity within Canada's regulated financial sector with respect to responding to climate-related risks. We recently used this forum to publicly consult on draft climate statistical risk data returns—a new tri-agency initiative with the Bank of Canada and the Canada Deposit Insurance Corporation. In early 2024, we'll also publish a “what we heard” report on OSFI's website through this initiative.
Yesterday, we published the draft methodology for a standardized climate-scenario analysis exercise that we will run in 2024. This scenario analysis exercise will help over 300 regulated financial institutions build up their capacity to conduct climate-scenario analysis. We'll use the forum again to conduct consultations for this work.
OSFI's new supervisory framework—which includes climate risk as a transverse risk—will become effective in 2024 and will be published on OSFI's website early next year. We have webinars scheduled for regulated financial institutions in early November to share more on requirements and timelines prior to the effective date.
When we published guideline B-15 in March 2023, we signalled that it would continue to evolve as standards and best practices advance both internationally and domestically. To that end, we are now working on changes to B-15 focused on disclosures, following the publication this summer of the International Sustainability Standards Board's S1 and S2 disclosure standards, which focus on governance, strategy, risk management, metrics and targets. We anticipate releasing an updated version of B-15 in March 2024.
To ensure an efficient and effective pension regulatory system in Canada, OSFI has been focused on coordinating with the Canadian Association of Pension Supervisory Authorities. CAPSA recently completed a consultation for a draft risk management guideline. The finalized CAPSA guideline on pension plan risk management is expected to be published in March 2024.
Finally, this winter we will table OSFI's departmental sustainable development strategy in Parliament and publish it on the OSFI website.
These are just some of the highlights of the progress we have made to date.
Thank you, Mr. Chair. I welcome questions from the committee.