A major step forward for managing ESG Risks
The European Banking Authority (EBA) has just published its final Guidelines on managing Environmental, Social, and Governance (ESG) risks. This is a significant milestone for financial institutions working towards a more sustainable future. These Guidelines set out clear expectations for identifying, measuring, and managing ESG risks, helping institutions strengthen resilience and support the EU’s climate neutrality goal by 2050.
Highlights:
- Institutions are expected to create transition plans that address financial risks stemming from ESG factors
- Internal processes and risk management arrangements will need to align with these new standards
- Implementation timelines: 11 January 2026 for most institutions, with an extra year for small and non-complex institutions
