French banks told to speed up response to climate change

By Reuters5 days ago

By Huw Jones

LONDON, May 4 (Reuters) - French banks and insurers should speed up their response to climate change, France's banking regulator said on Tuesday, after publishing what it called the world's first climate-related stress test of banks.

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Other financial watchdogs around the world will also be conducting similar tests on the finance industry to help to reduce the impact of climate change on economies. Banks and other finance companies will have to disclose to investors the impact of climate change on their balance sheets under proposed European Union rules.

The ACPR, the banking supervisory arm of the Bank of France, conducted a voluntary pilot test on nine banks and 15 insurers - accounting for nearly all their respective sectors - to measure resilience to common scenarios like a slow response to climate change.

It covered a 30-year period from 2020 to 2050, looking at risks from transitioning or moving from polluting to more climate-friendly assets and from physical risks like fires and floods.

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