This document builds on the work carried out by the Autorité de Contôle Prudentiel et de Résolution (French Prudential Supervision and Resolution Authority) since 2016 on the risks associated with climate change under provision V of Law No. 2015-992 of 17 August 2015 on energy transition for green growth.
The purpose of this document is to encourage the dissemination of good practices, whether it be:
The good practices identified in this document derive from interactions with the nine banking institutions that participated in the survey conducted by the ACPR in 2018, as well as with the French Banking Federation (Fédération Bancaire Française).
These suggested lines of approach are addressed to all banking institutions authorised in France – thus including institutions that are classified as “less significant”– that wish to start integrating or step up their approach to integrating climate risks. Each institution is therefore invited to consider these good practices in a proportionate manner, i.e. taking into account the importance of its exposures to financial risks arising from climate change and the specificities of its business model and internal governance.
Moreover, in addition to qualitative measures, this document encourages banking institutions to incorporate metrics quantifying their risks into their risk management framework associated with climate change. However, even though this objective should be pursued, the insufficient maturity of existing methodologies and the limited availability of the necessary data may lead institutions to use qualitative measures as an intermediate step.