The ECB says banks are generally failing to take adequate action to limit climate change-related risk, and face financial sanction. Photo: Daniel ROLAND / AFPSource: AFPThe European Central Bank on Tuesday threatened to impose financial penalties on banks who are slow to minimise climate change-related risks stemming from their activities. The ECB set a deadline of next year having determined there were major gaps in how the banks were assessing their impact on climate change and banks now face a financial penalty which theoretically could be as much as five percent of daily banking income. The ECB published in 2020 a slew of recommendations regarding bank governance in climate risk terms, including listing the percentage of carbon-related assets in each portfolio. For Elderson, "failing to adequately manage C&E risks is no longer compatible with sound risk management.

Source: Daily Nation November 14, 2023 18:08 UTC