Banks, as well as supervisors, do recognize that environmental factors could be a source of financial risk. Management of financial risks will be a key element of the transformation of the EU economy to reach net zero targets. It is therefore essential to step up efforts to ensure that risks are properly identified, understood, measured and managed. While banks are making progress, they are facing numerous operational and implementation challenges, many of which are neither originated, nor inherent to the banking industry. While some will need to be addressed at the level of individual organizations, others will benefit from collaborative approaches. To further strengthen the dialogue within the banking sector and to facilitate the discussion with the European Central Bank (ECB), a high-level Environmental, Social, and Governance Risk Roundtable (C-ESG Risk RT) was set up by the European Banking Federation (EBF) with the participation of 13 European banks. The EBF and ECB are acting in an observing capacity. The Roundtable focuses on climate risks with the objective of discussing current practices, identifying gaps, and promoting pragmatic and practical approaches, including interim solutions. |
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On 28 May 2024, we will be launching the third report resulting from the discussions and deliberations of the C-ESG Risk Roundtable Climate Scenario Analysis Workstream. Previous reports can be found here. In a context of extreme uncertainty and significant legal risk, the analysis of climate scenarios is a relevant tool for climate risk mitigation as it enables banks to manage risk based on concrete scenarios. Join us as we will be discussing this topic with representatives from the banking industry, the European Banking Authority and the European Central Bank. We will discuss common practices but also challenges, necessary improvements to the climate scenario analysis framework and expected developments. |
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The report will be available on the EBF website on 28 May,
after the launch event. |
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