Updated guide to managing climate and nature-related risk, also available in English

The summer of 2025 once again highlights the urgency of these issues. Heatwaves in Southern Europe, wildfires in Canada, and floods in Asia show that climate change and biodiversity loss are no longer distant threats.  They are already causing direct financial damage. This includes damage to property and infrastructure, as well as disruptions to supply chains. Financial institutions also face legal and reputational risks if they fail to comply with sustainability regulations.

By law, financial institutions are required to manage all material risks, including ESG risks such as climate and nature-related risks. While many institutions have taken steps to incorporate these risks into their risk frameworks, previous assessments show that integration is not yet consistent across the sector. The updated guide offers additional tools and examples to help institutions better identify, assess, and manage these risks. These resources are meant to inspire institutions in shaping their own approach to meeting statutory requirements.

New guide, new insights

Recent years have seen major developments in both regulation and understanding of climate and nature-related risks. The updated guide reflects these changes and includes:

• Expanded statutory frameworks
• New insights into nature-related and legal sustainability risks
• Updated good practices, including examples of nature risk management and the role of climate action plans

The guide has been refined with input from the financial sector and is intended for institutions supervised by DNB, such as insurers, pension funds, investment firms and payment institutions. Banks follow the ECB’s guide. Whether you are just starting or already advanced in managing these risks, the guide offers practical support for every level. 

How DNB uses the guide in supervision

DNB uses the guide’s focal points in its supervision of financial and non-financial risks related to climate change and environmental degradation. While the emphasis in recent years has been on raising awareness, DNB will increasingly focus on regulatory compliance. Supervision will follow a risk-based approach, tailored to the institution’s size, complexity, and the materiality of the risks. This means that supervisory activities may vary across sectors and institutions.

DNB also continues to embed ESG factors into risk assessments. For example, in 2025, DNB is conducting risk-based reviews of climate and nature-related risk analyses at pension funds and insurers. Starting in 2026, these risks will be considered in the periodic assessment of prudential risks such as market and strategic risk. To support this, DNB is further developing ESG data and dashboards to improve insight into institutions’ exposure to sustainability risks.