Note on Financial Stability and Supervision No. 29 - Climate risk for Italian banks: an update based on the Regional Bank Lending Survey

This note presents recent evidence of the steps taken by Italian banks to evaluate and integrate climate risks into their asset management. According to the most recent Regional Bank Lending Survey, only a small share of banks has already undertaken evaluations of the effects of climate-related risks (physical and transition) on their credit portfolio; nevertheless, the vast majority of financial intermediaries are planning to do so in the near future. Compared with similar surveys carried out in the past, the number of banks demonstrating that they are aware of and attentive to the risks associated with climate change is growing, but the adoption of good practices for the complete integration of these risks into their corporate strategies remains insufficient.