Financial Regulation
EBA ESG Risk Guidelines
The EBA Guidelines on the management of ESG risks (EBA/GL/2025/01) set expectations for how banks identify, measure, manage and monitor ESG risks, including transition plans. They apply from 11 January 2026, and from 11 January 2027 at the latest for small and non-complex institutions. I help translate them into materiality assessments, methodologies and risk processes.
Applies to
KPIs I calculate
- ESG materiality scores
- By risk type, sector and horizon
- Climate overlays on PD / LGD and ECL uplift
- Scenario-based transmission into credit risk
- Collateral climate haircut
- Physical risk applied to collateral value
- Financed emissions and alignment
- Portfolio emissions and sector pathways
- Sector concentration and limits
- Exposure to carbon-intensive sectors versus appetite
- Transition-plan milestones
- Targets and progress for the institution’s plan