The European Banking Authority (EBA) has initiated a public consultation on draft Guidelines addressing the management of Environmental, Social, and Governance (ESG) risks.
The proposed guidelines aim to establish requirements for institutions concerning the identification, measurement, and management of ESG risks.
Institutions will be required to develop plans to address risks associated with the transition to an EU climate-neutral economy.
The public consultation is open until April 18, 2024, with the Guidelines aiming to enhance the safety and soundness of financial institutions by addressing the impact of climate change and other ESG factors on their risk profiles and business models.