Environmental, Social, and Governance Risk Roundtable (C-ESG Risk RT) 

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EBF set up a high level Environmental, Social, and Governance Risk Roundtable (C-ESG Risk RT) with 13 European banks

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About the C-ESG Risk Roundtable

Sustainable finance has become a key priority for European banks. Banks as well as supervisors recognize that environmental factors could be a source of financial risk. To  properly identify, understand, measure and  manage this risk, banks’ internal systems, models, and processes, particularly those related to data collection, risk management and credit approval processes are being revisited.  While  banks are making tangible progress, they are facing numerous operational and implementation challenges, many of which are neither originated, nor inherent to the banking industry. While some will need to be addressed at the level of individual organisations, others will benefit from collaborative approaches and collective solutions and discussions between banks and supervisors.

To further strengthen the dialogue within the banking sector and to facilitate the discussion with the European Central Bank (ECB), a high level Environmental, Social, and Governance Risk Roundtable (C-ESG Risk RT) was set up by the European Banking Federation (EBF) with the participation of 13 European banks. The EBF and ECB are acting in observing capacity.  The Roundtable is focusing on climate risks with the objective to discuss current practices, identify gaps and promote pragmatic and practical approaches, including interim solutions. The RT is working on selected topics in four workstreams.

The results of this work will be shared with the entire banking industry to support and facilitate their implementation efforts and enhance harmonization, where relevant and possible, via  series of EBF webinars and the EBF website. The sole purpose of this initiative is to identify existing gaps and approaches shared by the Roundtable participants and further  share such experience and knowledge with the market,  to increase the level of collective awareness and deepen future dialogues on these topics that are expected to further evolve over the time. Individual institutions are free to consider the relevance of a particular approach for potential implementation within their own organization.

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For more details, workstream reports, and events please click below:

1. Data Workstream – Discover more HERE
2. Scenario analysis – ICAAP – Risk materiality Workstream
3. Physical Risk Workstream
4. Collateral Workstream – Discover more HERE

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About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.