ECB publishes assessment of banks’ practices in managing climate and environmental risks
The European Central Bank (ECB) has published its first-ever report on how European banks are adjusting their practices to manage climate and environmental (C&E) risks.
This follows the publication in November 2020 of a guide on C&E risks for banks, following a public consultation. Through the guide, the ECB explained how it expects banks to prudently manage and transparently disclose such risks under current prudential rules. The guide specifically called on banks and financial institutions to include these risks when developing their business strategy and risk management framework, and also publish key metrics on these issues in their regulatory disclosures.
According to its latest assessment, which covered 112 d