Legal & Regulatory News

ECB launches public consultation on its guide on climate-related and environmental risks

The European Central Bank (ECB) has launched a public consultation on its 'Guide on climate-related and environmental risks: Supervisory expectations relating to risk management and disclosure' (the Guide).

The Guide sets out the ECB's understanding of the safe and prudent management of climate-related and environmental risks under the current prudential framework. It also describes how the ECB expects institutions to consider climate-related and environmental risks – as drivers of established categories of prudential risks – when formulating and implementing their business strategy, and governance and risk management frameworks. The Guide further sets out how the ECB expects institutions to become more transparent by enhancing their climate-related and environmental disclosures.

The date for responses to the public consultation is 25 September 2020.

Click here to access the Guide.