Euro zone banks heavily exposed to dirtiest industries, ECB says
1 min read
Euro zone banks are heavily exposed to carbon-intensive industries and face significant climate-change related risks so they must start to build capacity now to manage these, European Central Bank supervisor Andrea Enria said on Wednesday.
FILE PHOTO: The European Central Bank (ECB) logo is pictured before a news conference on the outcome of the meeting of the Governing Council in Frankfurt, Germany, January 23, 2020. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) -

Wanting banks to take greater responsibility for their lending, the ECB has asked banks to start publicly disclosing data on their climate-related and environmental risks and told them to include these factors in longer-term business strategy.

"An abrupt transition to a low-carbon economy would have a severe impact on climate-sensitive economic sectors, triggering an increase in banking system losses of up to 60% compared with a baseline scenario," Enria said in a speech.

"On average, 15% of…
Reuters Editorial
Read full article