2020-12-10

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DNB's application of the ECB Guide on climate-related and environmental risks for banks

DNB applies the ECB Guide on climate-related and environmental risks in its supervision of less significant institutions (LSIs), aligning with the approach used for significant institutions. Dutch LSIs were required to complete a self-assessment in early 2021 to evaluate their working methods against the Guide's expectations and draw up action plans. DNB evaluated these self-assessments and discussed them with the banks as part of the supervisory dialogue.

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Following the ECB's recommendation, we apply the ECB Guide on climate-related and environmental risks in our supervision of less significant institutions (LSIs). In doing so, we follow the approach that the ECB applies to the significant institutions (SIs) under its direct supervision.

Published: 10 December 2020

Latest update: 11 May 2023

In early 2021, we asked the Dutch LSIs to complete a self-assessment. The purpose of this self-assessment was for banks to evaluate their own working methods based on the expectations outlined in the Guide and to draw up an action plan. We have evaluated these self-assessments and plans and questioned the banks about them as part of our supervisory dialogue.

The ECB's Guide to climate-related and environmental risks was published on 27 November 2020. It was developed jointly by the ECB and the national competent authorities (including DNB) with the aim of ensuring the consistent application of high supervisory standards across the euro area. The Guide outlines the ECB's recommendations regarding the safe and prudent management of climate-related and environmental risks within the existing prudential framework. The Guide is not binding on institutions, but is intended as a starting point for the supervisory dialogue.

The ECB recommends that the national competent authorities apply the expectations described in the Guide in their supervision of LSIs, taking into account the nature, size and complexity of the activities of the institutions concerned. We follow the ECB recommendation. In April 2020, we published a Good Practices on the integration of climate-related risk considerations into banks’ risk management . Our application of the ECB Guide is complementary to, and in line with, this Good Practices document.

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ECB publishes final guide on climate-related and environmental risks for banks (Refers to an external site)

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