Guide to managing climate and nature-related risks
Climate change and nature degradation can pose risks to financial institutions in the Netherlands. Financial institutions should understand their relevant risks and manage material risks appropriately. This includes climate and other nature-related risks: the 'E' in ESG. In the guide to managing climate and nature-related risks (PDF), De Nederlandsche Bank (DNB) provides insurers, pension funds, investment firms and institutions, and electronic money and payment institutions with guidelines for managing climate and nature-related risks. This Guide does not apply to banks, as the European Central Bank's guide is used in banking supervision.
The guide consists of a cross-sectoral approach, providing specific guidance to pension funds, insurers, investment firms and institutions, and electronic money and payment institutions. The sectoral sections consist of the following for each sector:
- Legislation: this lists the sector-specific legislation that financial institutions in the relevant sector must comply with to manage climate and nature-related risks.
- Impact of climate and nature-related risks: this presents examples of climate and nature-related risks and their potential impact in the specific sectors.
- Good practices for climate and nature-related risk management: good practices are provided for the focus areas of business model and strategy, governance, risk management and information provision for each sector. No good practices are currently available for the electronic money and payment institutions sector.