The Financial Stability Board (FSB) has delivered a report to the July 2025 meeting of G20 Finance Ministers and Central Bank Governors. It provides a factual update on the work undertaken by the FSB, standard-setting bodies and other international organisations in the four areas identified by the 2021 ‘Roadmap for Addressing Climate-related Financial Risks’. The Roadmap had been welcomed by the G20 in 2021.
For those pursuing the work, the challenges have related largely to having comprehensive, reliable, granular, consistent and comparable information on climate-related financial risks. As a result, the identification and management of such risks by firms, as well as the assessment of those risks and their incorporation in regulatory and supervisory frameworks by authorities, remains work in progress.
The challenges are particularly evident in developing a financial stability point of view. However, the four blocks of the Roadmap have proved sufficiently flexible to accommodate new developments and priorities. Going forward, FSB members will continue to evaluate how the analysis of topics, such as physical risks and gaps in insurance coverage, may contribute to a better understanding of financial stability risks.
The Roadmap responded to the desire, at that time, of G20 members for coordinated action over a multi-year period between standard-setting bodies (SSBs) and other international organisations (IOs). Since then, work has been conducted across all four blocks of the Roadmap. In summary, this work comprises:
Firm-level disclosures: a number of organisations are now focused on supporting jurisdictions in adopting, applying, or otherwise being informed by the 2023 International Sustainability Standards Board (ISSB) standards, complemented by capacity building and implementation of the new global sustainability assurance and ethics standards.
Data: various initiatives by IOs, SSBs and the private sector have been launched, aiming to provide more comprehensive, consistent and comparable data across jurisdictions that could also support analysis of climate-related financial risks.
Vulnerabilities analysis: work has been undertaken to understand the various channels through which climate shocks could potentially impact the financial system and to consider forward-looking metrics.
Regulatory and supervisory practices and tools: some SSBs and supervisory authorities are developing guidance in their respective sectors on how climate-related financial risks can be taken appropriately into account in sectoral regulatory and supervisory frameworks.
The Financial Stability Board (FSB) coordinates – at the international level – the work of national financial authorities and international standard-setting bodies in order to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. Its mandate is set out in the FSB Charter, which governs the policymaking and related activities of the FSB.