Claudia Buch discusses climate risks in banking supervision

Claudia Buch, Chair of the Supervisory Board of the ECB, emphasized the importance of banks addressing climate and environmental risks in her recent speech. She mentioned that since making climate-related risks a supervisory priority in 2019, there has been significant progress, with almost all banks now recognizing these risks as material financial threats. Despite the advancements, Buch highlighted that more work is needed to ensure effective climate risk management practices are in place in the banking sector.