by banks that were not yet doing it, showing banks'1 / 3 bis - central bankers'speeches willingness to integrate energy performance data into their credit risk management policies. this is good news. however, as supervisors, we are also concerned about the existing stock of loans. most of the data on this are based on proxies, which makes it difficult for both banks and supervisors to design and implement proper risk management measures. obtaining real data is admittedly challenging, yet many of the banks represented here today have made notable strides. you have found a way to collect energy performance data and use them effectively. and we invite all banks that have not yet advanced on collecting such data to learn from the good practices of those banks that have made critical leaps forward. legislative changes will improve the availability of energy performance data integrating climate - related data is also vitally important in view of impending legislative changes. the revised energy performance of buildings directive1, which includes common requirements for setting up national databases on the energy performance of buildings, is an important development that should help narrow the data gap. in the spirit of the directive, further work is needed to ensure adequate data management and increase the reliability and consistency of climate - related real estate data across the european union. establishing a comprehensive european database of all buildings in the eu will take time. so banks cannot just sit back and wait. as supervisors we expect banks to manage all material risks. and this requirement is not conditional on the attainability of harmonised data. we therefore strongly encourage all efforts to improve data availability and welcome the successful strategies that some banks have implemented to address data gaps. today's agenda will focus on the collection of energy performance data for the commercial and residential real estate sectors. but this will not be the only topic. properties in areas prone to hazard events such as floods, rising sea levels or wildfires are increasingly vulnerable and could see a decrease in their collateral value. last week's devastating floods in austria, czechia, hungary, italy, poland, romania and slovakia were a stark reminder of that. therefore, later in today's programme we will discuss the challenges and potential solutions for monitoring physical risk. in the coming weeks, the ecb will publish an analytical paper focusing on whether residential mortgage rates in high climate risk areas are influenced by this risk. the paper finds evidence that climate - related risk is already priced into mortgages. in other words, we see that an average bank took climate - related risks into account as loans

secured by real estate in high climate risk areas were more expensive than loans with the same characteristics but in safer regions. however, the effect we find is economically small, so it seems that the climate - related risk is still underpriced by the average bank. let me conclude. good, reliable data are a cornerstone of sound risk management. this also holds true for managing the risks stemming from climate change. thanks to the ongoing dialogue between supervisors and banks, some major stumbling blocks have already been overcome. the good practices observed for collecting real data on energy performance 2 / 3 bis - central bankers'speeches show that, while the task is challenging, it is far from impossible. sharing your practices with peers will help more banks to improve the availability of energy performance data. so we are all looking forward to hearing about your experiences and learning from what worked well. the ongoing climate and nature crises will inevitably render our economy more susceptible to shocks. from a risk - based perspective, let me reassure you that ecb banking supervision will continue to play our part in spurring on banks to prepare for these risks. to succeed in our common goal of making banks resilient to climate and nature - related risks, it is vital that we keep up this dialogue with you – the industry – and encourage the exchange of good practices in the years to come. i would like to thank you for coming to frankfurt today to share your experiences. 1 see european commission ( 2024 ), energy performance of buildings directive. 3 / 3 bis - central bankers'speeches