Europe’s banks are not integrating climate change and other sustainability concerns into their risk management systems as quickly as regulators expect, a study by BlackRock for the European Union showed on Monday.
In an interim report, BlackRock said it had analysed feedback from the region’s lenders and found most were only just starting to reflect environmental, social and governance (ESG) related risks in their internal processes.
A final report, which will be used by Brussels to help develop new regulations, is due by April next year.
“While interviewed banks often state that they have initiatives in place to enhance the integration of ESG risks, the majority have not formalised an ESG risk integration strategy with clear timelines and responsibilities,” it said.
“With respect to climate risk, many smaller banks stated that they have not yet started its integration into risk management,” the report said.
The original full article can be found at reuters.com
(Photo: REUTERS/Yves Herman)