2024-05-27

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DNB Good Practice on Integration of Climate-Related Risk Considerations into Banks’ Risk Management

The document provides practical guidance for banks to integrate climate-related physical and transition risks into their governance, risk management, and disclosures. It includes a Q&A section outlining the regulator's interpretation of current regulations regarding the treatment of climate-related risks. Banks are expected to identify the impact of these risks on their overall risk profile and balance sheets. The consultation on this Good Practice document closed on 17 January 2020.

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Published: 27 May 2024

Supervision consultation closed

This Supervision consultation is closed. It is no longer possible to respond.

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We have launched a consultation about our Good Practice document ‘Integration of climate-related risk considerations into banks’ risk management’. We welcome your views on its reasonableness, effectiveness and desirability. Responses are requested by 17 January 2020.

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.

Responses

Please provide your response by email to consultatie@dnb.nl, 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.

If you have any questions about the consultation procedure or the document, please contact Sem Houben (S.J.Houben@dnb.nl) or Julia van Huizen (J.E.van.Huizen@dnb.nl)

Consultation document - Good Practice 'Integration of climate-related risk considerations into banks’ risk management'

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