20. With regard to environmental risks, internal procedures and methodologies should allow …

With regard to environmental risks, internal procedures and methodologies should allow in-stitutions to:

a. quantify climate-related risks, such as by estimating the probabilities of materialisa-tion and magnitude of financial impacts stemming from climate-related factors;
b. properly understand the financial risks that may result from other types of environ-mental risks, such as those stemming from the degradation of nature, including bio-diversity loss and the loss of ecosystem services, or the misalignment of activities with actions aimed at protecting, restoring, and/or reducing negative impacts on nature;

c. establish key risk indicators (KRIs) covering at least short- and medium-term time ho-rizons and a scope of exposures and portfolios determined in line with the results of the materiality assessment.

1. Overview

Summary	Regulation

Requirements
Source	Requirement

Standards
Source	Requirement

EBA -
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