Finansinspektionen has an assignment to promote the financial system’s contribution to sustainable development. The sustainability report outlines the current sustainability issues that are related to the financial sector and lists examples of what FI is working on in this area.
The report describes FI's work with the new EU regulations and to achieve a global standard for sustainability reporting as well as other activities in the area that FI recently carried out or intends to carry out in the near future.
For example, during the year we investigated the extent to which the financial firms are measuring and reporting climate-related risks and climate effects. We also assessed how assets in Swedish insurance undertakings align to the climate goals in the Paris Agreement, as part of which countries from around the globe agreed to keep global warming well below 2 degrees.
During 2021, FI will also include a sustainability perspective when reviewing business models and credit risks of banks. We will review the extent to which banks consider sustainability risks when assessing the profitability of their business plans and in their risk management. FI will also analyse sustainability risks in the banks' credit portfolios.
To reduce emissions, the price on emitting carbon needs to increase in many parts of the world. To better understand and manage the transition risk associated with future price increases, FI advocates that firms use internal carbon pricing and disclose information on this.