Transparency about climate-related risks
Transparency about climate-related financial risks at supervised institutions is an important step towards the rational identification, measurement and management of these risks. At the end of May 2021, SFMA therefore clarified the disclosure requirements in the area of climate-related financial risks for significant financial institutions and communicated them in disclosure circulars.
- SFMA Ordinance on the Disclosure Obligations of Banks and Securities Firms (DisO-SFMA) of 6 March 2024 (SR 952.022.2)
- Disclosure obligations under supervisory law – see Annex 5 “Disclosures on climate-related financial risks”
- Press release
At the end of May 2021, SFMA clarified the disclosure requirements in the area of climate-related financial risks for significant financial institutions. These disclosure requirements came into force on 1 July 2021 and institutions must comply with them since 2022. Specific disclosure requirements will deliver greater transparency and comparability of climate-related risks of the institutions concerned. The requirements are generally principle-based and proportionate. Their application is limited to the most significant financial institutions (institutions in supervisory categories 1 and 2). Their content is based on the internationally widely recognised recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Subsequently, the largest banks and insurance companies must describe their material climate-related financial risks and their impact on their business strategy, business model and financial planning. They must also disclose the process for identifying, assessing and managing these risks (risk management), as well as quantitative information, including a description of the methodology used. Finally, institutions are required to describe the core characteristics of their governance structure in relation to climate-related financial risks. The exact wording of the specific requirements can be found in the ordinance and circular linked below. In 2024 SFMA carried out an ex-post evaluation of the disclosure requirements and took into account the various developments in the area of climate and sustainability reporting. SFMA's principle-based disclosure requirements remain compatible with the ordinance of the federal council as well as with other international frameworks and standards. A revision of the requirements is as a result, as well as due to ongoing developments, currently not needed and will be reassessed at a later stage.