The central bank will research climate-related risks to Canada’s economy and financial system. The BoC has also joined the Central Banks’ and Supervisors’ Network for Greening the Financial System, an international association of central banks that studies finance for sustainability and environmental projects and produces risk management policies for dealing with climate and environmental issues. (National Observer)
Talking point: Investors pay attention to the BoC’s warnings about vulnerabilities in the financial system and economy, so more may start to consider climate-related risks following this change. And, while the bank operates mostly independently of the government, Ottawa is increasingly focused on accounting for such risks, including through an Expert Panel on Sustainable Finance set up to advise the environment and finance ministers. The group’s interim report, released in October 2018, said Canada needs better climate data and financial analysis based on that information, as well as regular disclosures from companies about the climate-related financial risks they face. And, the panel shares some people with the BoC—former senior deputy governor Tiff Macklem is the chair, while its creation was inspired by a taskforce established by former governor Mark Carney, now governor of the Bank of England.