The European Central Bank’s (ECB’s) supervisory assessment of institutions’ climate-related and environmental risk disclosures report, published in March, found that for the second year running, eurozone banks came up short on sufficiently disclosing their climate risks, with no bank fully meeting the ECB’s supervisory expectations on climate risk disclosures.
The report was based on an assessment conducted at the end of 2021, with a sample of the 109 banks under the supervision of the ECB. It found that while some progress had been made from the year before, 75% of banks still do not disclose whether climate and environmental risks have a material impact on their risk profile. Meanwhile, almost 60% of banks do not describe how transition or physical risk could affect their strategy and only 15% of banks disclose Scope 3 finances emissions. Also, around 30% of banks that have committed to aligning their exposures with the Paris Agreement failed to provide any information to support this.