De Nederlandsche Bank is making a new push to help financial institutions manage climate and nature-related risk and it is conducting analysis of these risks at pension funds and insurers with a view to incorporating them into its regular risk assessments.

“While the emphasis in recent years has been on raising awareness, DNB will increasingly focus on regulatory compliance. Supervision will follow a risk-based approach, tailored to the institution’s size, complexity, and the materiality of the risks,” the Dutch central bank said.

DNB made the announcement as it launched a new guide to help the institutions it regulates – such as insurers, pension funds, investment firms and payment institutions – to integrate climate action plans into their risk management. It noted there had been major developments in both regulation and understanding of these risks in recent years.

“Heatwaves in southern Europe, wildfires in Canada, and floods in Asia show that climate change and biodiversity loss are no longer distant threats. They are already causing direct financial damage,” DNB said. “This includes damage to property and infrastructure, as well as disruptions to supply chains. Financial institutions also face legal and reputational risks if they fail to comply with sustainability regulations.”

DNB noted that financial institutions are required by law to manage all material risks, including risks such as climate and nature-related risks.

“While many institutions have taken steps to incorporate these risks into their risk frameworks, previous assessments show that integration is not yet consistent across the sector,” it said.

DNB said it is currently conducting reviews of sustainability risks at pension funds and insurers, adding that these risks will be considered in its periodic assessment of prudential risks from 2026.

To support this, the central bank said it is further developing ESG data and dashboards to improve its insight into exposures to sustainability risks.

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