EBA proposes guidelines for managing ESG risks in banking sector
The European Banking Authority (EBA) has published for comment draft guidelines for the management of Environmental, Social, and Governance (ESG) risks.
The guidelines outline requirements for financial institutions in identifying, measuring, managing, and monitoring ESG risks, with a focus on addressing risks associated with the transition to an EU climate-neutral economy. The consultation period extends until 18 April 2024.
The guidelines establish principles for developing and implementing plans, aligning with the Capital Requirement Directive (CRD6), to monitor and address financial risks stemming from ESG factors, particularly those related to achieving climate neutrality in the EU by 2050.
Financial institutions are encouraged to engage in the consultation process, contributing to the development of robust guidelines that address the evolving landscape of ESG risks.
Read more here.
