Banks warned to improve climate risk disclosures
The European Central Bank (ECB) has published its third assessment of European banks’ progress in disclosing climate and environmental risks. While most banks have increased their disclosures in the past year, the quality of information still falls short of upcoming supervisory standards.
The report warns that banks need to make urgent improvements to comply with new EU rules on climate and environmental disclosures that take effect this year.
Starting this year, EU banks must prepare to comply with enhanced disclosure requirements on climate and environmental risks. The implementing technical standards (ITS) on Pillar 3 disclosures, issued by the European Banking Authority (EBA), will apply to most significant banks in the euro area.
In case of non-compliance, the ECB will take supervisory action. The assessment report includes multiple examples of good practices that banks can consider to align their disclosures with supervisory expectations – and to align with general global trends.
Read more here.