[5] In the two years that followed, we conducted a number of supervisory exercises focusing on banks’ approaches to managing these risks. We looked closely at how banks are performing relative to our expectations and found that they still have a long way to go before they are fully compliant.
For example, most banks have put in place organisational architecture to address climate-related risks in line with our expectations. However, banks’ approaches still lack sophistication and granular information that are required for active management of the risk profile of institutions.