In addition, we will carry out a full supervisory review of banks’ practices for incorporating C&E risks into their risk frameworks, and gradually roll out a dedicated Supervisory Review and Evaluation Process methodology that will eventually influence banks’ minimum capital requirements. But this is not the end game.
Gradually we will start treating climate-related risks like any other risk and include them in all relevant supervisory requirements. Conclusion Let me conclude. The final results of the ECB’s benchmarking of banks’ disclosure and risk management practices for C&E risks suggest that, as things stand, European banks may be largely misaligned with the economic transition path towards carbon neutrality by 2050.