Legal & Regulatory News
Germany: BaFin publishes guidance notice on dealing with sustainability risks
01 January 2020BaFin has published a guidance notice on dealing with sustainability risks (the Guidance Notice).
The binding German version of the Guidance Notice was published on 20 December 2019 and later editorially modified on 13 January 2020. BaFin has now also made an English translation of the Guidance Notice available.
The Guidance Notice includes a detailed description of possible risk identification, management and control processes, together with traditional methods and procedures related to sustainability risks.
The Guidance Notice also covers internal stress tests, including scenario analyses, with a particular focus on entity-specific tests. In addition, the Guidance Notice considers transition and impact scenarios, but does not cover external stress tests.
The Guidance Notice is addressed to all credit institutions, insurance undertakings, pension funds, asset management companies and financial services institutions supervised by BaFin.
Click here to access the Guidance Notice in English.
Click here to access the Guidance Notice in German.