(Bloomberg) — The European Central Bank is urging banks to disclose more information about the climate and environmental risks they face. So far only 15% of them publish data on the greenhouse gas emissions they finance.
The ECB has urged banks to “take decisive action”, it said on Monday. According to a senior official, the central bank’s supervisory department expects “great progress” by the end of the year.
The ECB reiterated that it is “gradually” incorporating climate risks into its supervisory practice and that these will “eventually” affect Pillar 2 capital requirements, that is, those it sets for individual banks.
But banks are just beginning to record the climate-related activities they finance. “There is little justification for this lack of substantial progress,” Frank Elderson, deputy director of Banking Supervision at the ECB, said in a speech on Monday. “There should be no room for doubt: addressing climate and environmental risks and publishing high-quality data is not optional.”
More on the topic: Banks fear higher capital requirements due to climate test
Title of the article in the original:
The ECB says that only 15% of banks disclose financed CO2 emissions (1)
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