With this report, the ECB has endeavoured to provide a snapshot of the level of disclosure of climate-related and environmental risks in the SSM countries. The assessment was performed in view of the supervisory expectations set out in the “ECB Guide on climate-related and environmental risks”. To that end, the comprehensiveness of climate-related and environmental risk disclosures of 107 significant institutions (SIs) and 18 less significant institutions (LSIs) in the reference year 2019 were assessed.
While the assessment did not cover exhaustively all the elements needed to comprehensively disclose institutions’ risk profiles, and although only the existence of disclosures was assessed, this report provides an overview of the state of climate-related and environmental risk disclosures in the SSM area in 2020, also with respect to the related supervisory expectation. It also provides an overview of observed practices and areas for improvement. It is the second assessment of this type to be performed by the ECB, with the first one focusing on disclosures in the reference year 2018. It provides a baseline against which progress towards alignment with supervisory expectations can be measured going forward.