ESG focus

Author: Clerkin Lynch LLP

Date Published 01/12/2021

CBI Letter on Climate Change

The Governor of the Central Bank of Ireland (the “CBI”) wrote to the Chairs and CEOs of all Irish regulated financial services providers regarding climate change on 3 November 2021 (the “Letter”). In the Letter the CBI acknowledges the significant challenges faced in addressing climate and broader ESG issues and describes the CBI’s expectations for regulated financial service providers in this regard at a macro level.

The Letter outlines the CBI’s expectations of Firms focus across five key areas, namely:
1. Governance
2. Risk management framework
3. Scenario analysis
4. Strategy and business model risk
5. Disclosures.

It further notes that the CBI’s supervisory approach can be expected to evolve over time, including in light of international developments.

The Letter clearly demonstrates that ESG issues, and climate change specifically, will be a core focus for the CBI going forward. A copy of the Letter is available upon request.