Integrating climate-related and environmental risks into risk management frameworks has been saved
Article
Integrating climate-related and environmental risks into risk management frameworks
Practices and challenges for the Luxembourg banking industry
What does this whitepaper contain?
Context
The first section sets the scene and provides a summary of the EU Action Plan on Sustainable Finance and the relevant definitions of climate-related and environmental risks, as well as elements to understand how these risks can potentially turn into financial risks.
Regulatory background
This section sets out the regulatory background, including legislation and requirements applicable, with a focus on regional and stakeholder specificities.
Practical implications and challenges for banks
This section presents the expectations on sound strategy and governance, risk management, and disclosures. It also provides some insights on observed practices and related challenges for the banking sector in Luxembourg.
Evolving regulatory landscape around ESG risks and the progression of related risk management considerations have called for further collaboration between industry participants in order to help ESG risk management market practice to emerge.
Contacts
