ECB deepens climate and nature risk integration across operations
The European Central Bank (ECB) recently published a progress update marking the conclusion of its 2024–2025 climate and nature plan. The ECB confirmed that it has now embedded environmental risks across its core activities, including monetary policy, banking supervision, and portfolio management, and outlined its next steps for strengthening climate-related resilience.
The ECB has improved the way it draws on data to assess environmental risks, integrating them into macroeconomic forecasts, the Eurosystem’s collateral framework, and climate stress testing. In parallel, banks under supervision are now subject to more targeted scrutiny, with binding decisions issued where necessary to ensure sound climate risk management.
Better understanding and supervision of environmental risk relies on robust, timely and, ideally, structured data to monitor risk exposure and systemic resilience.
Read more from the ECB here.
