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;

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• 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

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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