The Bank of Canada has released its first annual report outlining the risks that climate change poses to its mandate and operations.
The report published today evaluates how the physical effects of climate change and potential disruptions from the transition to a low-carbon economy could impact the Bank’s ability to deliver its core functions. It outlines what the Bank is doing to manage these risks, including risks to its balance sheet and pension fund, and to reduce the carbon footprint of its operations.
“This report is part of our accountability to Canadians. It represents an important first step in evaluating and explaining how we are managing the climate risks we face and what we are doing to reduce our greenhouse gas emissions,” said Bank of Canada Governor Tiff Macklem. “We want others to do the same. Better data and risk assessments and more comprehensive disclosure will help investors, businesses, regulators, governments and all Canadians make better-informed decisions about climate change.”
- This report is in line with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). In 2021, the Government of Canada announced that Crown corporations would demonstrate climate leadership by adopting the TCFD standards as an element of their corporate reporting.
- This explainer outlines the Bank’s work to better understand climate-related risks to the economy and financial system and to make its operations more environmentally friendly.
- Find out why climate change is an issue for central banks in this article from The Economy, Plain and Simple.