In order to maintain an adequate level of resilience to the negative impacts of environmental, social and governance risks (hereinafter referred to as: ESG risks), credit institutions are expected to be able to systematically identify, measure and manage ESG risks, giving priority to environmental risks and working towards other sustainability factors as methodologies and assessment tools for assessment develop. The CNB introduced less significant credit institutions to the minimum expectations related to the business model and strategy, to the management and tendency to take on environmental risks, to the management of environmental risks, as well as to the expectations related to the disclosure of relevant information and key metrics on material environmental risks to which credit institutions are exposed. Less significant credit institutions were asked to conduct a self-assessment of harmonisation with the listed expectations, and based on the results of this self-assessment, certain aspects of environmental risk management in Croatian banks will be improved in the supervisory dialogue.
