FSB Climate Risk Roadmap 2025 Update

Bank of Japan's latest announcement reveals that the Financial Stability Board (FSB) published the "FSB Roadmap for Addressing Financial Risks from Climate Change: 2025 Update" on July 14, 2025. This document reports progress on the roadmap published in July 2021 and outlines the FSB's medium-term approach. Major progress includes corporate-level disclosure where adoption of standards published by the International Sustainability Standards Board (ISSB) in 2023 has advanced, with countries and regions representing approximately 57% of global GDP as of November 2024 taking measures toward ISSB standard adoption. On data, various initiatives have been launched to provide comprehensive, consistent, and comparable data supporting climate-related financial risk analysis. For vulnerability analysis, understanding of pathways through which climate shocks might affect the financial system has improved, with forward-looking metrics under consideration. In regulatory and supervisory practices, guidance for appropriately considering climate-related risks in each sector has been developed, including the Basel Committee on Banking Supervision (BCBS) publishing a voluntary framework for climate-related financial risk disclosure in June 2025. Challenges include the lack of comprehensive, reliable, and consistent climate-related financial risk information, with regulatory uncertainty, data gaps, reporting costs, and knowledge gaps serving as barriers particularly for emerging markets and developing economies (EMDEs) and small and medium enterprises. The FSB will continue to evaluate how analysis of topics such as physical risks and insurance coverage gaps can contribute to understanding financial stability risks as part of its annual work plan discussions. These efforts demonstrate the importance of international coordination and consistent approaches in addressing the potential impacts of climate change on the financial system.