On 27 May 2020, De Nederlandsche Bank (DNB) announced the Network for Greening the Financial System (NGFS) guides central banks and supervisors towards better management of climate-related and environmental risks.
18 Jun 2020
Prudential supervisors around the world are stepping up to integrate climate-related and environmental risks into their work. There is also a positive trend among financial institutions to better account for climate related risks of their assets.
This can be concluded from the publications of the NGFS:
- A Guide for Supervisors gathering leading practices of the supervisory community and issuing five recommendations for courses of action to be taken by NGFS members and beyond.
- A Status Report on financial institutions ’ experiences from working with green, non-green and brown financial assets and a potential risk differential offering an overview of industry definitions and practices regarding environmental related risks’ quantification and mitigation.
This article was originally published in the May edition of REGWATCH. Read the full edition covering the following jurisdictions:
- European Union
- Hong Kong
- United Kingdom