Network for Greening the Financial System publishes two documents

News
Datum 28 mei 2020

The Network for Greening the Financial System (NGFS) issued two new publications to highlight climate-related and environmental risks in prudential supervision.

NGFS

On 27 May 2020, the NGFS issued its Guide for ‘Guide for Supervisors: integrating climate-related and environmental risks into prudential supervision’ and the ‘Status report on financial institutions’ practices with respect to risk differential between green, non-green and brown financial assets’

Guide for Supervisors

The NGSF prepared this guide to provide its members with guidance in managing climate-related and environmental risks. It contains five recommendations on how supervisors could address such risks, accompanied by practices from supervisors from around the world. It also provides an overview of supervisors’ expectations of banks and insurers in terms of climate-related and environmental risk management, and questions that supervisors could address in discussions with financial institutions.

Status report on financial institutions’ practices with respect to risk differential between green, non-green and brown financial assets

This report presents the findings from a member survey into demonstrable differences between green, non-green and brown assets in terms of risks and losses. Such differences proved to difficult to demonstrate unambiguously due to differences in taxonomy and methodology.