As the EBA works on its new guidelines on ESG risks, the ESMA is about to become the new EU-wide supervisor on ESG ratings and the SSM increases pressure on institutions to ensure that environmental risks are adequately accounted for. Credit ratings provided by ECAIs are expected to include an assessment of how ESG risks affect the borrowers’ creditworthiness and ESG rating providers are about to enter an authorization regime involving new requirements on transparency, independence and reliability. The ECB’s new supervisory priorities request banks to “accelerate the effective remediation of shortcomings” on climate-related and environmental risks, as capital add-ons and sanctions may be used to ensure that such expectations are met.
Institutions are being asked to identify and measure ESG risks through sound data and methodologies, as well as to integrate them in their risk management frameworks (including as potential drivers of traditional financial risks). Such risks should become part of the risk appetite frameworks, internal controls and ICAAP, and should also be evaluated under a long-term perspective, as part of a bank’s strategic plans.
2024 Event Agenda
10:30 am | Introductory remarks - Andrea Resti, Bocconi University and advisor to the European Parliament on banking supervision
10:50 am | Assessing climate/ESG profiles: how Intesa Sanpaolo deals with it - Davide Alfonsi, Chief Risk Officer, Intesa Sanpaolo
11:10 am | Issues and Challenges in Climate Risk Management - TJ Lim – Group Risk Officer – Unicredit Group
11:30 am | Banco BPM's views on ESG and climate risks: tools and priorities - Andrea Rovellini, Chief Risk Officer, BancoBPM
11:50 am | ESG Ratings and ESG Factors in Credit Ratings – Developments in Approaches to Regulation - Stephen Hynes – Senior Policy Officer - Conduct Supervision and Convergence Department – European Securities and Markets Authority
12:10 am | Climate risks at significant institutions: a supervisor's view - Guan Schellekens – Team Lead – Climate Risk Project Management Office – European Central Bank
12:30 am | ESG factors: an overview of some recent EBA initiatives - Dorota Wojnar - Head of ESG Risks Unit – European Banking Authority
12:50 am | New perspectives and solutions on ESG Risks - Marco Macellari - Head of Risk Management & ESG - CRIF Italy
1:10 pm | Panel discussion - Q&As
1:10 pm | Concluding remarks