The document seeks to provide practical guidance for integrating climate-related risks into banks’ governance, risk management and disclosures.
The document also includes a Q&A that sets out DNB’s interpretation of current regulations in relation to the treatment of climate-related risks.
Why this Good Practice?
Banks may be vulnerable to the physical consequences of climate change (physical risks) as well as to the consequences of a transition to a climate neutral economy (transition risks). Given the potential impact of climate-related risks on banks' balance sheets, we expect banks to take climate-related risks into account in their risk management. Banks could do this by amongst others identifying the impact of these risks on their overall risk profile.
We invite feedback on the reasonableness, effectiveness and desirability of the good practice document. The responses will be addressed in a feedback statement, published on our Open Book on Supervision website in the first quarter of 2020. Please indicate explicitly if you do not wish your response to be included in the statement. We will also publish the definitive version of the good practice document on our Open Book on Supervision website in the first quarter of 2020.
Please provide your response by email to email@example.com, stating in the subject line “Response to consultation on good practice document Integration of climate-related risk considerations into banks’ risk management”. Please state explicitly in your email if you do not wish your response to be included in the feedback statement.
The deadline for submitting responses is 17 January 2020.