European Central Bank's Frankfurt headquarters (Stephan Rückert)European Central Bank's Frankfurt headquarters (Stephan Rückert)

Frankfurt, Germany — Banks need to improve their climate and environmental risk management frameworks according to Edouard Fernandez-Bollo, a member of the European Central Bank’s Supervisory Board.

Quoted from a contribution by Edouard Fernandez-Bollo, Member of the Supervisory Board of the European Central Bank, for Eurofi Magazine:

Banks acknowledged the materiality of the climate-related risks in their portfolios in 2022, with 70% seeing material risks within their business planning horizon of three to five years. Encouragingly, over 85% of banks have at least basic practices in place for most of the areas addressed by our supervisory expectations on C&E risks, which we published in 2020. This means that they have performed an initial mapping of their risk exposures, allocated responsibilities within the organisation, set initial key performance and risk indicators, and developed a qualitative mitigation strategy for at least part of their risk exposures.

By Silvia Orfeo

Silvia Orfeo is a Sr. Politics and Economics Reporter at Nobot.News

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