European authorities have told banks for the first time to take account of environmental risks in lending decisions, ramping up pressure on the financial industry to respond to climate change.
In lending guidelines issued Friday, the European Union's top banking regulator said banks must incorporate climate considerations in credit policies. Banks should also assess whether borrowers could be liable for contributing to global warming.
The Paris-based European Banking Authority called the move a "significant step" in the EU's fight against climate change.
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