EBA publishes results of EU-wide pilot exercise on climate risk

EBA publishes results of EU-wide pilot exercise on climate risk

1. The European Banking Authority published the findings of its first EU-wide pilot exercise
2. The findings also show big differences in banks’ application of the EU taxonomy
3. More disclosure on transition strategies and GHG emissions would be needed to allow banks and supervisors to assess climate risk
4. Results highlight the importance for banks to expand their data infrastructure to include clients’ information at the activity level
5. Banks’ disclosures will be reinforced following the EBA draft technical standards on Pillar 3 disclosures
6. Banks are currently in different development phases to assess the greenness of their exposures