ECB Imposes €7.55 Million in Periodic Fines on Crédit Agricole over Climate Risk Compliance Breach
The European Central Bank (ECB) has announced the imposition of periodic fines totaling €7,551,050 on Crédit Agricole, S.A. due to the bank’s failure to comply with a prior ECB directive issued on 8 February 2024, requiring a comprehensive assessment of its climate and environmental risk exposure.
According to the ECB statement, the directive obliged Crédit Agricole to strengthen mechanisms for identifying material climate- and environment-related risks affecting its operations, with explicit instructions that periodic fines would be levied if compliance was not achieved by 31 May 2024. The bank reportedly failed to fulfill the required materiality assessment for a total of 75 days in 2024.
In determining the fines and their total amount, the ECB considered the seriousness of the breach, its duration, and the daily revenue of the institution. The move is part of a broader supervisory escalation aimed at ensuring banks properly identify, assess, and manage climate and environmental risks.
The ECB’s regulatory approach began in 2020 with the publication of a guide on climate and environmental risks, detailing prudent risk management and disclosure requirements. In 2022, the ECB conducted climate stress tests and objective reviews, revealing shortcomings in several major institutions. Subsequently, banks received detailed letters outlining phased timelines to address identified risks. Failure to meet deadlines triggers legally binding measures, including periodic fines calculated daily until full compliance.
The ECB highlighted that Crédit Agricole retains the right to appeal the decision before the Court of Justice of the European Union.