Circular Letter No CC/2021/00000010: Establishing supervisory expectations on climate and environmental risks for less significant institutions

The Banco de Portugal extends the European Central Bank's supervisory expectations on climate and environmental risks to less significant credit institutions under its direct supervision. This extension requires these institutions to progressively adapt their strategies, governance, risk management, and disclosures in a manner proportionate to their nature, scale, and complexity. Supervisory dialogue regarding these matters will commence from the second quarter of 2022 to allow for a transitional period.

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Circular Letter No CC/2021/00000010
Sent to:
Credit Institutions.
Mod. 40000375/T – 01/14
Subject: Establishing supervisory expectations on the identification and management of climate and environmental risks for the less significant institutions

Climate and environmental risks are increasingly important to banking activity. Given that their characteristics are distinct from the traditional risk factors to which the banking system is exposed, due to the uncertainty and the time horizon in which they may materialise, these risks require particular attention from the banking system.

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Lineage: In force

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Source: Banco de Portugal — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works