French financial sector poorly accounts for climate risks, says Bank of France

(EurActiv, 28 Oct 2019) In a note published on Friday (25 October), the Bank of France noted that the risks associated with climate change are taken into account in a “partial and heterogeneous” manner by France’s financial institutions. EURACTIV’s partner La Tribune reports.

Beyond the crucial role of France’s financial sector in the shift towards more sustainable growth and the social responsibility of companies, the sector can also lead to a significant devaluation of certain assets.

But the sector has not yet fully grasped the implications of climate change, even though these cannot be ignored, said the Bank of France note published on Friday.

The French Prudential and Resolution Authority (ACPR), an independent administrative authority backed by the Bank of France, has indeed analysed the data of the banking and insurance institutions it supervises.

In particular, it is responsible for supervising the implementation of extra-financial reporting by insurers according to Article 173 of the country’s Energy Transition Law.

“Despite some progress, climate change is still partially and heterogeneously integrated into the risk management process of financial institutions,” Sébastien Diot and Anne-Lise Bontemps-Chanel summarised in the note.

But not all of them go at the same pace. There are so-called “advanced” institutions, generally the major international banking groups, as well as some “specialised” ones, which have integrated climate issues into their risk management.

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EurActiv, 28 Oct 2019: French financial sector poorly accounts for climate risks, says Bank of France