- The European Banking Authority (EBA) drafts new guidelines for managing ESG risks.
- Active ESG factors, like climate change and social conflict, present challenges to the EU’s economy and financial sector.
- Institutions’ risk profiles and business models may face headwinds as the EU aims for net-zero carbon emissions.
- EBA proposes requirements for effective management processes addressing the impact of ESG factors on financial exposure.
- Public consultation on the proposals is open until April 18, 2024, through the EBA’s consultation website.
- The EBA’s risk anticipation aligns with EU initiatives for net-zero transition, including collecting ESG data and the Capital Requirement Directive (CRD6) finalized in December.
