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Banking sustainability risks: are new prudential ​frameworks required at the global and EU levels?

Day 1 Afternoon

Wednesday 23 February

Room :

NORMANDIE (-1 floor)


Steven Maijoor
Executive Director of Supervision - De Nederlandsche Bank (DNB)
Public Authorities
François-Louis Michaud
Executive Director - European Banking Authority (EBA)
Alessandra Perrazzelli
Deputy Governor - Banca d'Italia
Fernando Restoy
Chairman - Financial Stability Institute (FSI)
Sam Woods
Deputy Governor - Bank of England
Industry Representatives
Marie-Dominique Gordon
Chief Compliance Officer - Bank of China (Europe) S.A.
Shinsuke Toda
Chief Executive Officer for Europe, Middle East and Africa - Mizuho Financial Group, Inc. / Mizuho Bank, Ltd.
Emmanuel Volland
Senior Director - S&P Global

Background and objective of the session

Climate-related risks differ from usual ones. They are far-reaching across all sectors and economies, highly non-linear and long-term, and impact classical risk categories (credit, market, operational). Their assessment is much more complex, forward-looking, and further uncertain, making C&E a major issue to be addressed.

This session will be dedicated to discussing current banks’ management of C&E risks, whether they are physical or transition risks, and the limitations and expected evolution of their practices. The aim is to highlight areas of improvement in assessing and mitigating those risks. Also, the discussion will investigate the possible evolutions of the regulatory framework.

Questions to be addressed

  1. How are banks managing sustainability risks in
    the EU? What are the lessons to be drawn from recent EU stress-tests?
    What is being done to address highlighted concerning points (physical risk underestimation, difficulties to approach the very long term, inconsistencies in portfolio orientation, …)? How to complete in EU banks the integration of climate related risk into the general risk managing scheme?
  2. What are the priority areas of the Basel Committee and of the NGFS? What kind of EU and global regulation would be necessary? What are the priorities and focus points listed by the Basel Committee and the NGFS (incorporation into business strategies and corporate governance, comprehensive assessment of risk drivers, …)? Is the Basel Framework well fitted for managing climate risks? Are regulatory capital additions required?How to achieve a level playing field through a consistent approach from supervisory teams across the board globally?