On April 20, 2023, the Financial Stability Board released a report on Climate-related Financial Risk Factors in Compensation Frameworks. The report, which was prepared based on a 2022 survey conducted in FSB member jurisdictions across the banking, insurance, and asset management sectors, provides insights on how financial institutions incorporate climate-related metrics into their compensation frameworks and identifies related implementation challenges. Recognizing that this is an area that is in the early stages of development and implementation and is expected to continue to evolve, the report suggests that financial regulators can facilitate the process by sharing regulatory and industry practices with each other and with the industry.
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