The EU wants to achieve climate neutrality by 2050.
The financial markets also play a decisive role in the change.
To make financial transactions more sustainable, the European Central Bank is asking banks to disclose more information about the climate and environmental risks they face.
According to the Bloomberg news agency, only 15 percent of them have so far published data on the greenhouse gas emissions they finance.
"There is little justification for this lack of substantive progress," Bloomberg quoted Frank Elderson, deputy head of ECB Banking Supervision, as saying in a speech on Monday.
"There must be no room for doubt: addressing climate and environmental risks and publishing high-quality data is not optional."
No institute lives up to expectations
According to Elderson, they will face stricter regulation: "And banks are running out of time to prepare for it." Despite progress since the first inventory at the end of 2020, according to the ECB, none of the 109 financial institutions examined under the microscope still meets the expectations of the supervisory authority to fully disclose the risks.
Elderson warned that financial institutions must create comprehensive transparency.
The Dutchman is ECB director and at the same time deputy head of ECB banking supervision.
This has created a guide for financial institutions on climate and environmental risks.
The dangers include investments in emission-intensive companies and climate-damaging sectors.
Because with these, prices could change rapidly, for example due to shifts in politics, major climate incidents or changing investor attitudes.
This also includes risks to business activities due to extreme weather conditions.