Banks have some way to go in disclosing climate risk: Lagarde

FILE PHOTO: European Central Bank President Christine Lagarde looks on during a debate on the 2018 annual report of the ECB, at the European Parliament in Strasbourg, France, February 11, 2020. REUTERS/Vincent Kessler/File Photo

FRANKFURT (Reuters) – Climate change poses a risk to the financial sector and central banks need to pay closer attention as banks have some way to go in assessing and disclosing their exposure, European Central Bank President Christine Lagarde said on Thursday.

“Central banks need to devote greater attention to understanding the impact of climate change, including its implications for inflation dynamics,” Lagarde said in London. “The ongoing review of our monetary policy strategy creates an opportunity to reflect on how to address sustainability considerations.”

Reporting by Balazs Koranyi; Editing by Gareth Jones

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