In addition to these European initiatives, the Central Bank also conducted a horizontal assessment of Less Significant Institutions’ (LSIs’) board-approved plans relating to climate-related and environmental risks in 2022. Again, while we acknowledge that some progress has been made since the initial assessment, the majority of these plans lacked ambition, with significant variations in the quality of the plans received.
Furthermore insufficient progress has been made to ensure that climate and environmental risks are adequately addressed and mitigated. Crucially we have also found that boards do not have clear, credible and achievable plans in place, supported by the necessary resources and capabilities, to meet the supervisory expectations in respect of climate related and environmental risks.