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Climate-related legal risk being priced into loans, suggest ECB researchers
07 August 2025Climate-related legal risk is becoming systematically priced into corporate lending decisions, with companies targeted by lawsuits paying "significantly higher spreads" on their bank loans, according to researchers at the European Central Bank (ECB).
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EU banks have already reduced climate risk in response to supervision, say ECB researchers
23 July 2024The European Central Bank (ECB)'s climate-related supervision has already led to an improvement in banks' risk exposure and management, and increased capital allocation towards green finance, according to researchers at the central bank.