Banks told to brace for ECB fines after mismanaging climate risk

Though likely to be largely symbolic, the fines represent an historic step

As many as four banks face fines after not meeting deadlines set by the ECB for assessing their exposure to climate risks. Pic: Getty Images 

The European Central Bank (ECB) confirmed that it is preparing to fine a number of lenders after they failed to make adequate progress in addressing risks posed to their business by climate change.

“We have notified a few banks that, based on our current assessment, they have not met the interim milestones, which means they face the prospect of having to pay a so-called pecuniary penalty,” said Kerstin af Jochnick, a member of the ECB’s supervisory board.