Regulatory enforcement
The 2022 climate related stress tests performed by the ECB and local authorities DNB in the Netherlands and NBB in Belgium confirmed that virtually all financial institutions consider ESG and climate risk to be core elements for their businesses and strategy At the same time the regulators conclude that financial institutions need to improve the translation of their ESG strategy into the actual business operations Often financials do not have a full and clear view on all relevant climate related risks that may develop The ECB and the local prudential authorities have urged for swift improvements Failing clear results the regulators will likely resort to more formal regulatory actions against banks insurers and pension funds.
The Dutch AFM and the Belgian FSMA have similar expectations but also look at ESG disclosures and potential greenwashing in general The 2022/2023 European Consultation on Greenwashing will likely trigger regulatory enforcement and product assessments and investigations.
This is what we offer our clients:
- Implementation of ECB/EBA and local regulators expectations
- ESG expert sessions, for C-level executives as well as tailored sessions for ESG-expert groups.
- Advice on ESG-related requirements for board members and regulatory screening processes.
- Assistance with the update and drafting of the internal governance documentation of financial institutions.
- Regulatory surveys – how to respond to ESG related information requests from the regulators.
- Regulatory enforcement – how to respond to potential enforcement action if an alleged breach of ESG rules is found.