If Dutch banks for example were ignoring the increased credit risk from the sustainability requirement for offices, you can be sure we would be in a serious supervisory dialogue as part of the Pillar 2 credit risk assessment. But that’s of course just one very specific example, where there is specific transition legislation affecting only a small part of our economy.
It’s more challenging for the energy transition as a whole and for banks’ balance sheets as a whole. How should supervisors assess  5  how well banks are incorporating climate-related risks there? Do we need to establish a separate risk category in the Supervisory Review and Evaluation Process as some European Parliament members are proposing?