“Banks in Europe will need to adjust the risk assessments they conduct of their clients to reflect new ESG requirements enforced by their watchdog.
In a world first, the European Banking Authority is revising the framework that sets industrywide capital requirements for lenders — known as Pillar 1 — to incorporate environmental and social risks. Some of the obligations will be enforced immediately, while others will be rolled out over time and will in some cases lead to new legislation, according to the EBA…
Such steps follow warnings from institutional investors who are losing patience with banks. They want the gatekeepers of capital to use their clout to impact greenhouse gas emissions by steering cash away from heavy emitters and toward green clients.
Meanwhile, litigation is becoming a growing threat for banks dragging their feet, according to the Network for Greening the Financial System, a group of more than 100 central bankers and regulators formulating recommendations to get through the climate crisis.”
Analyst Comment: In the US, most institutions have abandoned existing ESG schemes after massive losses and low interest in ESG investments. EU is continuing its path to suicide by trying to punish established energy providers and replace them with expensive, inefficient, and unreliable green energy alternatives. Even the WEF backed away from their heavy green energy push and began promoting nuclear power as a clean power source.