Climate Risk Management in Local Banks

This study examines how climate risk is integrated within Italian local banks, based on the results of a survey conducted in 2025. The analysis shows that Esg integration is relatively advanced in terms of governance structures and the development of sustainable offerings, while the adoption of binding risk management tools remains partial, and fossil fuel exclusion policies are still marginal. Overall, the findings point to a selective and incremental approach to climate risk integration, primarily reflecting a transition-supporting model rather than strategies aimed at excluding counterparties most exposed to climate-related risks.