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The European Banking Federation has responded to the European Banking Authority’s consultation on incorporating ESG risks into the governance, risk management and supervision of credit institutions and investment firms. The increasingly active role banks play in the assessment of climate risks can impact their clients’ viability and solvency in the medium and long term, in turn affecting bank risk and profitability. While the EBF supports efforts to proactively incorporate ESG factors into risk management as risk drivers, this should not substitute necessary policy actions for economic actors to change their behaviour. Public policy should be the primary driver for decreasing overall risk in the economy and fostering sustainable economic development. The banking industry is committed to working with policymakers to achieve the EU’s climate objectives, but this cannot be a substitute for a potential lack of political action.
The EBF response covers the following elements:
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Find the EBF response to this consultation by clicking the ‘full document’ button below:
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FOR MORE INFORMATION:
Sustainable Finance page on the EBF website: CLICK HERE