RegSol Blog

Central Bank Dear CEO letter - Supervisory expectations of regulated firms regarding climate change

November 2021

On the 3rd of November 2021, the Governor of the Central Bank of Ireland, Gabriel Makhlouf, wrote to regulated financial services providers to highlight the statutory obligations and related supervisory expectations relating to climate and sustainability issues.

The letter states “The Central Bank’s mission is to serve the public interest by maintaining monetary and financial stability while ensuring that the financial system operates in the best interests of consumers and the wider economy. We see addressing climate change as a strategic priority and that the financial system has to be resilient to the risks it poses as well as having a significant role to serve the needs of consumers and the wider economy in a transition to a carbon neutral future.”

With the 2021 United Nations Climate Change Conference (COP26) just over and the Network for Greening the Financial System, (NGFS) publishing the “NGFS Glasgow Declaration” this letter is a timely reminder of the importance of climate change and the responsibilities that regulated firms have. The CBI has also committed to redoubling its efforts regarding climate change. 

For details of the press release, Dear CEO letter and the Glasgow Declaration please see attached link:

Central Bank sets out supervisory expectations of regulated firms regarding climate change, and reaffirms own commitment to take action