In April 2023, the European Central Bank (ECB) published the results of the 2022 supervisory assessment of institutions' climate-related and environmental risks disclosures on significant and less significant institutions. 

It assesses the progress banks have made on disclosures across key areas of expectations as set out in ECB's Guide expectation 13 (published in November 2020). 

Despite improvements on the provision of basic information for most expectations, the quality of the disclosure remains low and doesn't allow institutions to appropriately assess risks and mitigate them.

ECB outlines that“substantial efforts”are needed from most of the institutions. They will need to provide insight on how to tackle identified shortcomings to comply with the EBA ITS on pillar 3 disclosures.

In this document, we highlight the review's key findings as well as the set of best practices identified by the ECB to align the institutions' practices with supervisory expectations.