Central Banks
ECB Warns Banks of Yet More Fines Over Climate Risk Management
- A ‘small group of outliers’ is facing penalties, ECB Says
- Warning is latest salvo in ECB’s effort to tackle climate risk
The headquarters of the European Central Bank in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank has stepped up its efforts to prepare lenders for the fallout from climate change by warning firms they face even more fines if they don’t sufficiently address the risks ahead.
A “small group of outliers” faces periodic penalty payments after the ECB found that they’re still missing “foundational elements for the adequate management of climate and nature-related risks,” said Frank Elderson, a member of ECB’s Executive Board.