On 27 November 2019, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a good practice guide on the integration of climate-related risk considerations into banks’ risk management (the Good Practice Guide) for consultation.
In the Good Practice Guide, DNB explains how the integration of climate-related risks can be implemented in the governance, risk management and disclosure practice of banks. The Good Practice Guide consists of three sections:
- a section describing climate-related risks, including examples of how climate change can be a driver of conventional risk types (e.g. credit risk, market risk, operational risk and other risk types);
- a section setting out the current regulatory framework for climate-related risks and DNB’s expectation that banks incorporate climate-related risks into their governance and risk management arrangements in line with the principle of proportionality; and
- a good practices section outlining how climate-related risks may be integrated into banks’ practices, focusing on three thematic areas: governance, risk management and disclosure.
The key question of the consultation is whether the good practices set out in the Good Practice Guide are sufficiently clear and actually provide tools to the banks for further integration of climate-related risks into their practices.
The deadline for submitting feedback to DNB is 17 January 2020. DNB expects to publish an overview of the feedback received in the first quarter of 2020.
View the Good Practice Guide, 27 November 2019.
View the consultation webpage (Dutch only), 27 November 2019.