Sustainability in Risk Management

Credit institutions are urged to systematically capture, assess and disclosure sustainability-related risks to safeguard both their own and systemic financial stability.

Sustainability risks are drivers of existing financial risks

The requirements under the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) oblige greater integration physical and transitional climate risks and other sustainability-related risk factors by credit institutions into their risk management. Sustainability risks are assess as being drivers of risk for existing risk categories, and therefore are an integral component of the financial risk and business profile.

Credit institutions that are financial market participants or financial advisers under the Sustainable Finance Disclosure Regulation (SFDR) are required to observe transparency obligations regarding the inclusion of sustainability risks in their investment decision-making processes.

Credit institutions that distribute financial instruments, are required to take sustainability risks into account when observing organisational requirements in their investment business, as well as in securities risk management and regarding conflicts of interest.

We believe in risk integration:

The systematic capturing, assessment and management of ESG risks in their overarching risk management framework, as well as, in line with the size and complexity of the respective institution, in individual existing risk categories.