Reuters: ECB started issuing fine notices to banks not meeting climate expectations
24 September 2024
The ECB has long complained that banks are not meeting its supervisory expectations on climate issues and warned there would be financial consequences if interim deadlines or its year-end target date are missed.
The European Central Bank has started issuing fine notices to lenders not meeting its long-defined expectations on disclosing and managing climate risk, Irene Heemskerk, the head of the ECB's climate change centre, told Reuters on Tuesday.
"We already said that if banks don't comply, we won't shy away from enforcement measures," Heemskerk told a Reuters Newsmaker event. "Some banks did not meet this interim deadline on materiality assessment or other (matters), and we already issued periodic penalty payments."
Actual payments do not immediately kick in, but banks will have to pay up if they fail their remedial deadlines, Heemskerk said.
"And that fine is dependent on your profits, or on the size of your bank, so that could be pretty material," Heemskerk said.
Appointed in mid-2021, Heemskerk has been a key figure in defining and coordinating the ECB's efforts in tackling climate change since policymakers approved an action plan as part of a broader strategy review.
Reuters
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