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ARTICLE · 25 NOVEMBER 2019

BaFin's Draft Guidance Notice On Dealing With Sustainability Risks Raises Concerns From Market Participants

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The German Federal Financial Supervisory Authority (BaFin) published1 on October 16, 2019, its Consultation 16/2019.

GermanyFinance and Banking

The German Federal Financial Supervisory Authority (BaFin) published1 on October 16, 2019, its Consultation 16/2019: Guidance Notice on Dealing with Sustainability Risks (the Draft Guidance Notice). The objective of this Draft Guidance Notice is to provide entities supervised by the BaFin with guidance on dealing with the increasingly important issue of sustainability risks. The Draft Guidance Notice represents an addition to the BaFin's expectations set out in its minimum requirements for risk management (Mindestanforderungen an das Risikomanagement - MaRisk) that already provide guidance for risk management by credit institutions2, insurance undertakings3 and asset management companies4.

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