Banks and Climate-Related Information: The Case of Portugal

Aldina Lopes Santos and Lúcia Lima Rodrigues
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Aldina Lopes Santos: Department of Management, School of Economics and Management, University of Minho, 4710-057 Braga, Portugal
Lúcia Lima Rodrigues: NIPE, Department of Management, School of Economics and Management, University of Minho, 4710-057 Braga, Portugal

Sustainability, 2021, vol. 13, issue 21, 1-20

Abstract: In 2014, a European Union (EU) Directive required certain large undertakings and groups to disclose non-financial information from 2017 onwards. In 2017, the EU guidelines on non-financial reporting established that reporting climate-related information is part of the non-financial information. Later, in 2019, the guidelines were reinforced to include a supplement that envisages improving climate-related information reporting. Banks can contribute to reducing climate-related risks by supporting investments in economic activities that aim to mitigate the risk of climate change. Capital needs should be reoriented towards sustainable investment. Banks shall manage financial risks arising from climate change; therefore, they must integrate climate change into their policies and procedures, assessing the potential impact of projects and financing on climate change. This study aimed to evaluate how banks in Portugal have been reporting climate-related information and whether the level of information has increased since 2017. Using content analysis, findings indicated that banks are already including climate-related information; however, they are still far from approaching what the new guidelines require. Results suggested that there is still a long way to go in this area concerning banks and regulators.

Keywords: banks; disclosures; directive 2014/95/EU; non-financial reporting; climate-related information; Portugal (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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