In the opinion of the ECB supervisors, many big banks in the euro area are not yet resolute in tackling climate risks for their business. On the basis of an analysis of 112 financial institutions, the banking supervisors of the European Central Bank (ECB) come to the conclusion that the institutes have “taken the first steps to include climate-related risks”. However, “no bank even comes close to meeting all the expectations of the supervisory authorities,” said the banking supervisory authority on Monday.

According to the ECB, half of the banks included in the analysis assume that climate and environmental risks will have a significant impact on their risk profile in the next three to five years. “It is noteworthy that all banks that considered they were not exposed to climate-related risks showed significant deficiencies in assessing their risks,” writes the ECB.

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