FSB sharpens focus on climate risk, data quality, and cross-border coordination
At the recent G20 meeting in Durban, new Financial Stability Board (FSB) Chair Andrew Bailey laid out his strategic vision, backed by a fresh update to the Roadmap for Addressing Climate-related Financial Risks. Together, the documents underscore the FSB’s evolving priorities: improving climate-related data, strengthening surveillance, and enhancing cross-border coordination.
The updated roadmap, delivered to G20 Finance Ministers and Central Bank Governors, highlights persistent data quality issues as a barrier to effective climate risk oversight. It tracks work across disclosures, data availability, vulnerabilities analysis, and regulatory practices, pointing to growing uptake of ISSB standards and progress in assurance and supervisory guidance. In response to the South African G20 Presidency, the roadmap now includes a medium-term outlook focused on information sharing, insurance coverage gaps, and systemic risk assessment.
In parallel, Bailey’s first letter as Chair reinforces these themes. He emphasises the need to evolve surveillance tools in step with market complexity, and flags areas such as private finance, leverage, and stablecoins as emerging points of concern. He also backs a more focused, effective FSB, one that is committed to implementation and collaboration in a fragmented geopolitical landscape.
