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Sweden: Financial Sector Assessment Program–Technical Note on Supervision and Disclosure of Climate-Related Risks

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  • International Monetary Fund

Abstract

This paper discusses the technical note on Supervision and Disclosure of Climate-Related Risks for the Sweden Financial Sector Assessment Program. Swedish banks are in general mainly exposed to the effects of climate change through loans that are collateralized by real estate properties and lending to high-emission industries. Despite the challenges, Finansinspektionen (FI) has undertaken a number of positive initiatives aimed at integrating climate-related risks and the wider sustainability issues into its supervisory processes. There are however, still some gaps that need to be gradually addressed by FI to ensure full integration of climate-related risks into supervisory processes. The specific action to further integrate climate into the supervisory process should be prioritized based on the vulnerability of the Swedish banks and progress at international level in addressing the challenges that are not unique to Sweden. FI should also in a proportional manner formalize and expand its collaboration and information sharing arrangements with other Swedish Agencies involved in climate-related work.

Suggested Citation

  • International Monetary Fund, 2023. "Sweden: Financial Sector Assessment Program–Technical Note on Supervision and Disclosure of Climate-Related Risks," IMF Staff Country Reports 2023/137, International Monetary Fund.
  • Handle: RePEc:imf:imfscr:2023/137
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