Governance Briefing — OSFI Guideline B-15 Stage 1 climate governance

Executive briefing: The Office of the Superintendent of Financial Institutions’ Guideline B-15: Climate Risk Management applies in two stages. Stage 1 captures domestic systemically important banks (D-SIBs) and internationally active insurance groups for fiscal years ending on or after 31 October 2024. Boards must embed climate considerations into governance structures, risk appetite, strategy, and risk management policies. Institutions must document roles, accountability, and oversight mechanisms for climate-related risks and opportunities.

Key governance signals

Board responsibilities. Boards must approve climate risk frameworks, receive regular reporting, and ensure management implements effective risk mitigation.
Risk appetite integration. Climate risk must be reflected in risk appetite statements, capital planning, and strategic decision-making.
Disclosure alignment. OSFI expects institutions to align with TCFD-aligned disclosures, explaining governance structures and oversight processes.

Action checklist

Update board charters and committee mandates to include climate risk oversight responsibilities and reporting cadence.
Integrate climate metrics and limits into enterprise risk dashboards, capital plans, and scenario analysis governance.
Coordinate with sustainability and finance teams to align OSFI reporting with CSRD, SEC, or ISSB frameworks.

Enablement moves

Develop training programmes for directors and senior management on OSFI expectations, climate risk drivers, and supervisory focus areas.
Implement documentation standards capturing governance decisions, challenge logs, and remediation progress for supervisory reviews.
Enhance data governance over emissions, financed emissions, and scenario modelling inputs feeding into board reporting.

Sources

Zeph Tech equips Canadian banks with climate governance dashboards, risk appetite integration, and supervisory evidence packs for Guideline B-15 Stage 1.