Post by Stephane Tardif, CPA, MBA, PMP

I had the pleasure of participating in a fireside chat with Scott Morrison as part of PwC Toronto Climate Week | TOCW. The discussion centred on the Office of the Superintendent of Financial Institutions Canada guideline #B15 and the evolving nature of #climate financial regulation. The next phase is about implementation. Many institutions have made progress on risk governance, awareness, and risk identification, but the challenge now is to advance decision-useful climate risk measurement. Climate-related financial risk analysis is only useful to supervisors and institutions if it can be measured well enough to inform decisions. Today, the main challenge is not awareness — it is data quality, comparability, and decision-usefulness. Institutions are improving their ability to identify exposures, but many still rely on proxies, incomplete data, external models, and assumptions that may not fully capture tail risks, correlations, or localized vulnerabilities. From a prudential perspective, limited measurement should not be interpreted as limited risk. It often signals a capability gap. Looking ahead, #B15 will evolve pragmatically. The priority is to deepen implementation and assess effectiveness in practice. Transition planning, disclosures, and assurance will all become more important as climate-related information becomes more quantitative, material, and decision-useful. Ultimately, the objective is straightforward: ensuring financial institutions can remain resilient as climate-related risks evolve — protecting depositors, policyholders, creditors, and public confidence in the Canadian financial system.