AMF and OSFI release their report on financial institution resilience to climate risks

MONTRÉAL, Sept. 11, 2025 /CNW/ - The Autorité des marchés financiers (AMF) and the Office of the Superintendent of Financial Institutions (OSFI) are releasing their report from the Standardized Climate Scenario Exercise (SCSE), which involved more than 250 Canadian financial institutions.

Based on the findings from the SCSE, while climate-related financial risks may not pose an immediate threat, they could become more profound over the long term and expose the financial sector to vulnerabilities. Consequently, institutions need to enhance their data and modeling capacity in order to support more targeted analysis and integrate climate risk into their core decision-making processes.

"Enhancing the methods for measuring, assessing and managing climate-related financial risks is key to maintaining confidence in the financial system," said Yves Ouellet, AMF President and CEO. "Ongoing efforts in this area will help safeguard financial stability and reinforce institutional resilience as climate-related challenges evolve," he added. 

"The SCSE was a key step forward in advancing climate risk management practices at financial institutions. The final SCSE report highlights the power of data-driven analysis in understanding climate-related risks," said Peter Routledge, Superintendent, OSFI. "I thank the AMF for their collaboration, which helped broaden participation and deepen our insights. Together, we're laying the groundwork for a more resilient Canadian financial system."

The AMF and OSFI will incorporate the findings of the report into their supervisory expectations and risk management guidance. Future work will focus on assessing financial institutions' capacity to measure and adequately assess climate- and catastrophe-related financial risks using robust data-driven approaches.

Standardized Climate Scenario Exercise
In 2024, OSFI, in collaboration with the AMF, conducted the SCSE with three objectives in mind. The first was to enhance the financial sector's understanding of climate-related financial risks. The second was to facilitate the building of capacity to measure climate risks. The third was to provide a standardized and comparable overview of physical and transition risks for the vast majority of federally regulated and Québec-regulated financial institutions. 

The SCSE enabled financial institutions to effectively build their capacity to identify, assess and quantify climate risks using standardized frameworks and methodologies. For many of the participating institutions, the SCSE was their first experience with such an assessment, which confirmed the overall value and relevance of the exercise.

About the Autorité des marchés financiers

In its role as regulator, the Autorité des marchés financiers acts to maintain a financial sector that is dynamic, operates with integrity and warrants public confidence. It regulates, in whole or in part, activities in the following sectors: insurance, deposit institutions, securities and derivatives, distribution of financial products and services, mortgage brokerage and credit assessment.

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SOURCE Autorité des Marchés financiers