Climate change has become a real threat to financial stability. Indeed a 2021 global bank survey found that more than 90 percent of respondents identified climate change as the most important risk to their businesses in the medium term. There are two types of risks through which climate change can contribute to prudential risk—physical and transition—and banks in the ASEAN+3 region are among the most susceptible. In this note, both qualitative and quantitative methods are applied to assess the greening efforts by banks in the ASEAN+3 region. It concludes with recommendations on strengthening capacity to address ESG risks.