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'ECB Sends Strict Warning to Banks with ESG Regulations'


The European Central Bank wants financial top executives to know that they will be held responsible for the industry's 'continued failure' to adequately manage climate and environmental risks.

Bloomberg news agency recently quoted Dutchman Frank Elderson, a member of the ECB's executive board, saying that the ESG risk building up in some bank books "raises more and more questions about the suitability and decency" of the responsible directors.

Banks are taking too long to treat climate and environmental risks as a material threat that can affect their finances, according to the ECB. Elderson's speech, given five years after the European Union started rolling out its sustainable financing agenda, represents one of the ECB's sternest warnings to date on the subject.

By the way, Dutch banks seem to be leading the way in Europe when it comes to mapping ESG risks.

Click here for the interview with Frank Elderson.