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DNB consults the sector on a draft Good Practice on the integration of climate-related risk considerations into banks’ risk management
We have launched a consultation about our Good Practice document ‘Integration of climate-related risk considerations into banks’ risk management’. The consultation period runs until 14 February 2020.
The consultation seeks views on whether the practices are sufficiently clear, and whether they provide banks with practical guidance for further integration of climate-related risks into their governance, risk management and disclosures.
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. They could do this by amongst others identifying the impact of these risks on their overall risk profile.
The good practices seek to provide banks with practical guidance for further integration of climate-related risks into their governance, risk management and disclosures. These good practices are based on principal findings from DNB’s analysis of the climate risk self-assessments submitted by Dutch less significant institutions (LSIs) and other market observations made through our climate work.
We invite feedback on the good practices set out in this consultation. This consultation closes on 14 February 2020.