Financial Stability Report 2020

This is a thematic article on climate-change-related transition risk associated with real estate exposures in the Belgian financial sector. The article identifies the energy inefficiency of real estate exposures as an important risk factor for the transition risk to which the Belgian financial sector is potentially exposed. The article includes the recommendations to financial institutions to gather data on this subject and to start analysing to what extent the energy efficiency of their real estate exposures may impact their current and future credit risk and subsequently manage and mitigate the transition risk associated with their real estate exposures.