Regulatory Alerts2020-04-01
Added · Updated
Q&A Integration of climate-related risk considerations into banks’ risk management
Dutch banks must incorporate climate-related risks into their governance and risk management arrangements in line with the principle of proportionality. This requirement stems from existing regulations, including Article 74 of CRD V and Section 3:17 of the Wft, which mandate robust governance and sound business operations. Banks must address physical and transition risks through their risk identification, management, and reporting processes, such as in ICAAP submissions. If climate risks are deemed immaterial, institutions must provide a transparent analysis explaining why they do not impact the bank's risk profile.
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