On June 30, ISDA, the Institute of International Finance (IIF) and the Global Financial Markets Association (GFMA) submitted a joint response to the Financial Stability Board (FSB) on its interim report on supervisory and regulatory approaches to climate-related risks.
The associations support and welcome the FSB’s initiative in developing the report to assist supervisory and regulatory authorities in developing their approaches to climate change, focusing on cross-sectoral and system-wide aspects of climate-related financial risks.
The associations consider climate change to be a critically urgent global issue, which warrants a globally coordinated and harmonized approach across jurisdictions, including in supervisory principles and standards with respect to climate risk management. As outlined in the response, the associations and their members consider that supervisory engagement, risk management, disclosure, and scenario analysis exercises are likely to be an effective toolkit for financial institutions to measure, manage, and take steps to mitigate climate-related risks.
ISDA’s members are committed to maintaining the safety and efficiency of the global financial markets and recognize that banks have a big role to play in the management of climate-related financial risks.
Documents (1) for ISDA, IIF, GFMA Respond to FSB on Climate-related Risks
Latest
Expanding Legal Agreement Coverage in the CDM
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ISDA Omnibus Canadian Representation Letter
On September 2, ISDA published the Omnibus Canadian Representation Letter, which combines previously published representation letters drafted to assist firms in compliance with Canadian trade reporting, business conduct, regulatory margin and clearing classification rules. The Omnibus Canadian Letter is designed...
Joint Response on Cross-margining
On August 31, ISDA and FIA submitted a letter to the US Commodity Futures and Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on the agencies’ joint request for comment on the implementation of portfolio margining and cross-margining...
Accounting for Carbon Credits: Latest Developments
This paper updates and extends the analysis set out in ISDA’s October 2023 paper on accounting for carbon credits. While preserving the original focus on the accounting treatment of voluntary carbon credits (VCCs) and compliance carbon credits (CCCs), it expands...