Post by European Central Bank

Euro area banks have made progress in managing climate and nature‑related risks, but gaps remain.   In an evolving risk environment, more needs to be done to ensure banks apply sound practices across all material portfolios, exposures and risk categories, and some bank-specific weaknesses still need to be addressed.   In a blog post, Supervisory Board Vice-Chair Frank Elderson writes:   The updated compendium of good practices supports banks in strengthening risk management in particularly challenging areas, such as nature-related risks, transition planning and physical risks. Built on extensive supervisory dialogue with banks, this compendium of good practices can help banks close gaps in their risk management frameworks. We will continue to work closely with banks to make sure they are resilient to climate and nature-related risks, particularly at a time of heightened uncertainty, in line with our supervisory priorities. We need to ensure banks can stay strong and keep playing their vitally important role in the economy.   Want to learn more? Read the full Supervision Blog post 👉 https://lnkd.in/dk28KyFw