##gradati on. pdf https : / / www. bankingsupervision. europa. eu / press / pr / date / 2020 / html / ssm. pr201127 ~ 5642b6e68d. en. html https : / / eur - lex. europa. eu / eli / reg _ impl / 2022 / 2453 / oj https : / / www. eba. europa. eu / eba - publishes - its - roadmap - sustainable - finance in recent years, supervisory efforts in this field have also stepped up. for example, with the ecb thematic review, 21 carried out in 2022, on compliance with supervisory expectations and the climate risk stress test22 whose results were published in the summer. these exercises showed that although banks have made progress in including these risks in their day - to - day management, there is still much to be done. i will now briefly mention the key aspects of these two exercises. thematic review the thematic review23 shows, among other aspects, that more than 80 % of institutions recognise that climate risks have a material impact on their risk profile and that, in consequence, they have begun to include climate - related risks in their risk management framework. for example, they have mapped risk exposures and allocated responsibilities within their organisation, set risk indicators ( kpis ) and begun to develop qualitative mitigation strategies. however, these measures are still not considered sufficiently sophisticated and, in addition, there is still a considerable shortage of granular data. indeed, less than 10 % of institutions use sufficient forward - looking data to manage this risk. both the ecb and the national supervisors hope that by the end of 2024 institutions ’ practices in this area will be fully aligned with supervisory expectations. https : / / www. bankingsupervision. europa. eu / ecb / pub / pdf / ssm. thematicreviewcerreport112022 ~ 2eb322a79c. en. pdf lhttps : / / www. bankingsupervision. europa. eu / ecb / pub / pdf / ssm. climate _ stress _ test _ report. 20220708 ~ 2e3cc0999f. en. p df lhttps : / / www. bankingsupervision. europa. eu / ecb / pub / pdf / ssm. thematicreviewcercompendiumgood

system a case in point is the creation of the network for greening the financial system ( ngfs ), a group of central banks and supervisors set up in late 2017. its aims are to contribute to the development of environment and climate risk management in the financial sector, share best practices, perform analytical work and mobilise finance to support the transition towards a sustainable economy. the network is working to incorporate climate - related issues into a range of areas, such as financial supervision, the development of climate scenarios, the inclusion of climate - related issues in the monetary policy framework, the integration of sustainable investment principles into own portfolio management, awareness - raising and, needless to say, environmental management within the institutions themselves. the growing number of subject areas in recent years, and the network ’ s burgeoning membership, clearly testifies to the increasing engagement of central banks. compared with the initial group of eight central banks and supervisors, 6 the network is now home to 121 institutions and 19 observers from all five continents. the banco de espana was one of the first to join ( in april 2018 ) ; it is a plenary member and plays an active role in all of the workstreams. from my personal experience i can confirm that it is a forum for global banco de mexico, bank of england, banque de france and autorite de controle prudentiel et de resolution, de nederlandsche bank, deutsche bundesbank, finansinspektionen ( sweden ), the monetary authority of singapore and the people ’ s bank of china. cooperation characterised by continuous learning, drawing on both the experience of the members themselves and the analytical work performed by the different workstreams. meanwhile, the eurosystem, the european central bank ( ecb ) and the banco de espana have also been devoting considerably more resources to better understanding the implications of climate change. notably, this includes : i ) ii ) iii ) the incorporation of climate - related issues within the ecb ’ s monetary policy framework. the integration of sustainable and responsible investment practices into own portfolio management. the assessment of climate risks in microprudential supervision. monetary policy first, with respect to our monetary policy mandate, in 2021 the ecb ’ s governing council presented an action plan to include climate change considerations in its monetary policy strategy. the measures aim to reduce financial risk related to climate change on the eurosystem ’ s balance sheet. moreover, they are designed in accordance with the eurosyst