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MNI BRIEF: Eurozone Banking Supervisor Takes Action On Climate

(MNI) LONDON

European banks that fail to meet ECB banking supervisors’ climate-related and environmental risk standards are one step closer to facing daily fines, Executive Board member Frank Elderson said in a speech Tuesday.

“We have issued binding supervisory decisions, including the potential imposition of periodic penalty payments if banks fail on their requirements,” Elderson said, echoing remarks he made to MNI a September. “In other words, we have told those banks to remedy the shortcoming by a certain date and, if they don’t comply, they will have to pay a penalty for every day the shortcoming remains unresolved.” (see MNI INTERVIEW: ECB To Fine Banks Missing Climate Goals - Elderson).

Elderson also called for the financial sector to be covered by the European Commission’s Corporate Sustainability Due Diligence Directive. “Not excluding the financial sector from the remit of the CSDDD can further help to create greater certainty around financial institutions’ obligations in this area and around climate- and environment-related litigation risks for the financial sector,” he said.
MNI Frankfurt Bureau | +49-69-720-146 | luke.heighton@marketnews.com
MNI Frankfurt Bureau | +49-69-720-146 | luke.heighton@marketnews.com

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