ECB report on good practice in the area of climate stress tests
Climate stress tests are a key tool for supervisors in assessing the impact on the banking system from climate risks. First conducted this year, the climate stress tests showed that over the last year banks have to a great extent made suitable changes to their organisational structures to be prepared to address climate-related and environmental risks. The second major finding is that the consideration of these risks in their actual business varies greatly from bank to bank. The aim of the report published today is to present banks with examples of good practice identified in this year’s climate stress tests, and to help them improve their capability in testing stress situations in connection with climate risks.