ECB”) published a speech on bank’s role in greening the economy.
The PRA published a discussion paper (DP1/21) that explores the options for developing a simpler prudential framework for non-systemic banks and building societies.
The FCA published a summary of insights from its cyber co-ordination group meetings on current cyber risks and firms practices for responding to them.
The European Insurance and Occupational Pensions Authority (“
EIOPA”) published a discussion paper on blockchain and smart contracts in insurance.
28 April
The FCA published a consultation paper (CP21/9) on changes to conduct and organisational requirements laid down in UK laws and regulations implementing the MiFID II Directive (EU/2014/65) (“
Addressing Climate-Related Financial Risk Through Bank Capital Requirements Getty/Drew Angerer
People walk past the New York Stock Exchange on a rainy day in the Financial District, October 2018, in New York City.
Julia Cusick
Introduction and summary
The climate crisis has profound implications for every sector of the economy, every corner of society, and every aspect of public policy. Several years ago, it may have been acceptable for U.S. financial regulators to brush climate change aside as an issue left to other government departments and agencies. Today, improved data and climate-risk economic analysis, coupled with strong international consensus, make it untenable for financial regulators to ignore the critical nexus of climate change and the financial system. Even some of the conservative regulators appointed by President Donald Trump now view climate change as an important priority that falls within their remit.
Breakdown: Net zero goals demand zero tolerance reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
Sustainability under the spotlight for businesses today and in the future
Aurel Constantin 06/05/2021 | 15:45
On 21 April 2021, the European Commission announced an ambitious and comprehensive package of measures intended to further promote sustainability, as part of the goal of making Europe climate neutral by 2050. One of the many steps outlined is a proposal for a Corporate Sustainability Reporting Directive (CSRD), the aim of which would be to improve the flow of sustainability information in the corporate world, making sustainability reporting by companies more consistent, so that firms, investors and the broader public can use comparable and reliable sustainability information in their decisions.
Supervisory guidance on risk management can foster a greener financial sector
Boy walking in flooded street, Jakarta, Indonesia. Photo: Farhana Asnap / World Bank
As more people see climate change as a source of financial risks, several financial supervisory authorities have started issuing risk management guidelines that incorporate climate-related risks, largely based on the Network for Greening the Financial System (NGFS)’s guide.
But the trend has been limited to advanced economies. Only a few emerging markets and developing economies (EMDEs) have begun making efforts to understand and assess climate-related financial risks.
Integrating climate-related financial risks into supervisory guidance could raise awareness and set expectations on how banks in EMDEs should integrate physical and transition risks in the overall risk management framework. It would foster the safety and soundness of banks and the banking system in these countries. In addition, by nudging banks to