Elderson: Conversation with Bloomberg
Understanding the Timeline for Climate Risk Penalty Payments
At first glance, the timeline for implementing periodic penalty payments related to climate risk management appeared quite lengthy. Why was this the case? Because addressing climate and environmental risks was a relatively new challenge, we chose a phased, multi-year strategy. Our efforts intensified gradually: we introduced supervisory expectations in 2020, followed by banks conducting self-assessments and developing action plans in 2021. In 2022, we evaluated their progress. Although banks were making strides, we encouraged them to accelerate their efforts. To this end, we established a firm deadline at the end of 2024, along with specific interim targets. The initial milestone, a materiality assessment, was set for March 2023.
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