ESG risks | NKBM

The Bank has embedded ESG factors in its risk framework in accordance with relevant ECB guidelines and with best business practices. Such risks form part of its risk register.

The assessment of such risks is a regular activity and the Bank will continue to identify ESG risk factors and incorporate them into existing risk types rather than into a single, standalone ESG risk type.

The Bank has identified acute physical risk (such as floods, earthquakes, fires, extreme weather and environmental disasters) and transition risk (i.e. policy changes driven by the zero emissions target) as key risk drivers. The Group has begun to monitor material ESG risks and to assess the impact on its different business lines.

The Group will integrate progressively ESG, primarily climate-related and environmental risks, into its risk management framework in the coming plan period to 2025.