Central Bank Supervisory Role: Micro-Prudential Supervision and Regulation of ESG Risks

Central Bank Supervisory Role: Micro-Prudential Supervision and Regulation of ESG Risks

Report

Central Bank Supervisory Role: Micro-Prudential Supervision and Regulation of ESG Risks

Recent years have seen great strides in the deepening of our understanding of how sustainability factors – in particular those related to environment, society and governance (ESG) – may act as drivers of financial risks, and therefore are of relevance to institutions responsible for oversight of the financial sector.

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