The impact of climate change can no longer be ignored. There was far too little rain in northern and western Germany in March, the risk of forest fires is rising steadily, North Rhine-Westphalia is facing the threat of drought, larger ships can only travel along the Rhine with significantly reduced cargo and Lake Constance has the lowest water level recorded in years. These physical effects of climate change and the measures taken to contain them can result in financial risks on credit institutions’ balance sheets. For banking supervisors, it is important that credit institutions are aware of these physical and transition risks and that they manage them appropriately. This is the only way to ensure the banking sector remains stable and is able to finance the green transformation of the economy. 

Contents  

• Physical and transition risks
• Regulatory approaches for taking these risks into account
• Requirements for credit institutions’ risk management

Expert 

Stefan Nießner works as a lawyer at the Bundesbank. He heads the Sustainability Section of the Directorate General Banking and Financial Supervision, which addresses the topic of ESG risks (ESG stands for environmental, social and governance) in detail, from scientific analysis and regulation to implementation in supervisory practice. As a hobby winemaker in his free time, our expert is directly aware of climate change. He prefers to drink his coffee black. “Sometimes with frothed milk. But never with sugar.”

Participation 

Would you like to take part in our dialogue event? Register now! The number of places is limited. Participation is free of charge. The event is accessible to people with disabilities. Refreshments and snacks will be provided.