One hurdle – the Payments Services Directive (PSD) – has been overcome. For the first time, a consistent legal framework will be applied in each country. The second hurdle – the questions surrounding the multilateral balancing payment (MBP) – will have to be overcome as soon as possible.
And one bank has developed a climate risk dashboard to present to its Board’s risk committee on a quarterly basis. This shows that data scarcity can be overcome. Finally, some banks have already started to identify and manage other environmental risks beyond climate, such as those associated with biodiversity loss and pollution.