Banks Will Have to Include Climate Change in Risk Management by July 2022

Folha de S. Paulo, Larissa Garcia in 15/09/2021

On September 15th, the Central Bank of Brazil published a list of measures for Environmental and Sustainable Governance (ESG) that obliges banks and other financial institutions to include climate change in their risk management.

The change makes banks take into account potential losses from climatic shocks when releasing credit and loans. In addition, the Central Bank will publish an annual report on social and environmental risks for accountability.

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