The European Central Bank (ECB) today announced a decision to expand its work on climate change, issuing a new "Climate and Nature Plan 2024-2025" outlining its plan for action in these areas over the next two years. According to the ECB, the new initiative comes amid the growing impact of the climate crisis on the economy and financial system, with the central bank's work focusing on key areas including the impact and risks of the green transition, the growing physical risk of climate change and the risks arising from the loss and degradation of nature. A new announcement follows ECB decision from 2022 set "stepping up efforts to address climate change" as one of its top supervisory priorities, with planned actions including conducting deep dives into banks' climate risk, reviewing banks' compliance with climate risk disclosure requirements. and examining reputational and litigation risk related to banks' climate and environmental strategies and risks. The ECB said its increased focus would complement its current climate measures as part of its ongoing tasks, including monetary policy and banking supervision. (More on esgtoday.com author: Mark Segal)