Principle 16: In conducting supervisory assessments of banks' management of climate-related financial risks, supervisors should utilise an appropriate range of techniques and tools and adopt adequate follow-up measures in case of material misalignment with supervisory expectations. [Reference principles: BCP 8, BCP 9, SRP 10, SRP 20]

58. Supervisors should set expectations in a manner proportionate to the nature, scale and complexity of relevant banks' activities.

59. To foster cross-border collaboration, home and host supervisors of cross-border banking groups should share information related to the climate risk resilience of banks and banking groups, leveraging existing frameworks for sharing information and undertaking collaborative work.

Principle 17: Supervisors should ensure that they have adequate resources and capacity to effectively assess banks' management of climate-related financial risks. [Reference principles: BCP 9]

60. Supervisors should take regular stock of existing skills and projected requirements, taking into account relevant evolving market practices and supervisory practices in this landscape, and take timely measures to build adequate expertise in identified skill sets. Where aspects of climate-related risk assessments are outsourced, supervisors should maintain appropriate knowledge to ensure that the results of the outsourced analysis are credible and realistic.

61. Supervisors should engage a broad and diverse range of stakeholders to facilitate a collective understanding and measurement of climate-related financial risks and allow for optimisation of climate-dedicated resources.