And then they need to set specific targets, for both 2030 and 2050, so that they can align with the trajectories towards net-zero in 2050 or earlier. To achieve these targets, banks might need to adjust their business model and their range of products and services.
Or they may need to adjust their decision-making process and thus adapt their governance structure and risk management procedures. It is important that banks provide qualitative and quantitative disclosures to support their commitments. As mentioned earlier, the recent ECB assessment shows that banks do not fully meet ECB expectations on disclosure of C&E risks.