ECB ready to force banks to tackle climate risk, Buch says

Euro zone banks are making progress in tackling climate-related risk but need to do more and the European Central Bank is ready to force them to act if necessary, ECB bank supervisor Claudia Buch said on Tuesday.

“Almost all banks see climate-related and environmental risks as material financial risks and are adjusting their risk management step by step,” Buch said in a speech.

“But a great deal more work lies ahead,” she added. “If they don’t meet our supervisory expectations, we can take applicable measures, for example by requiring better risk management or higher capital.”