The European Central Bank (ECB) has intensified its efforts to ensure that lenders adequately address climate change risks. The ECB has issued new decisions and warned banks of additional fines if they fail to manage climate and nature-related risks effectively. Frank Elderson, Vice-Chair of the ECB Supervisory Board, highlighted that while many banks have shown progress, there are still shortcomings that need to be addressed. Sabine Mauderer, First Deputy Governor of the Bundesbank, noted that climate risk will complicate central bankers’ jobs, emphasizing the need for financial institutions to integrate climate risk into their business models and risk assessments.