Multiethnic group of people cooperating for environmental protection

Canada’s federal banking regulator is joining a group of global policymakers dedicated to financial sector climate risk.

The Office of the Superintendent of Financial Institutions (OSFI) said Tuesday that it has joined the the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). The group of central bankers and regulators was launched at a climate summit in 2017 to share best practices on dealing with climate risk and to help facilitate the growth of sustainable finance.

“Climate change is the challenge of our generation, and it demands all of us to address its threats with a greater sense of urgency, vigour and effort commensurate with the risk. OSFI’s membership in the NGFS is a critical, though not final, milestone in our efforts to address climate change risk amongst Canadian financial institutions and pension plans,” said Peter Routledge, OSFI’s superintendent, in a release.

The regulator noted that it has already taken steps to address climate-related risks in its oversight efforts while also engaging in a variety of both global and local initiatives to deal with growing climate concerns.