MSCI in practice: How to progress to meet the European Central Banks' Supervisory Expectations on climate and environmental risk

The European Central Bank (ECB) set deadlines for banks to progressively meet all supervisory expectations stated in its guide on climate and environmental-related risks (published in November 2020) by the end of 2024. The expectations concerned the integration of climate and environmental-related risk across a bank's business model, strategy, governance, risk management, and disclosure.

During this webinar, we discussed metrics and models designed to identify climate and environmental-related risks of financial assets and portfolios and how to integrate them into banks’ existing risk management frameworks. Participants explored approaches to incorporate climate and environmental analysis into their market and credit risk assessment. Furthermore, we discussed solutions to assess risk exposure at the counterparty level and how to bridge gaps in situations of missing reported data.