In April 2022, the Bank of Italy issued its first Supervisory expectations for climate and environmental risks, containing non-binding indications for supervised banking and financial intermediaries on the integration of climate-related and environmental risks into their governance and control systems, business models and strategies, organizational systems and business processes, risk management systems and market disclosure.
To this end, in the second quarter of 2022, the Bank of Italy conducted a first survey on the extent of integration of climate and environmental risks into the organizational system of the Less Significant Institutions (LSIs) under its direct supervision and took part in the ECB survey on Significant Institutions (SIs), using a sample of 21 intermediaries.
In this regard, the Bank of Italy has now published the main findings of the survey, including a detailed report, which, among other things, asked the governing bodies of all LSIs to draw up and approve specific action plans for effectively integrating climate risks into their ordinary governance and risk management frameworks within the next three years.
