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ECB Tells Banks to Reflect Climate Risks in Strategy by End 2023

  • Supervisors say too many banks have ‘wait and see’ approach
  • ECB pushing lenders to ensure stability amid climate change

The European Central Bank said lenders have until the end of next year to reflect climate risks in their governance, strategy and risk management as the watchdog ratchets up the pressure on the industry to prepare for fallout from global warming.

While some banks are planning for the transition to a low-carbon economy and engaging with their clients, “a wait-and-see approach still prevails in most banks,” the ECB said in a statement on Wednesday in Frankfurt.