Legal & Regulatory News

EBA launches consultation on ESG risk management and supervision

The European Banking Authority (EBA) has published a Discussion Paper on environmental, social and governance (ESG) risk management and supervision. The purpose is to collect feedback for the preparation of the EBA's final report on this topic, expected to be released in June 2021. The Discussion Paper provides a comprehensive proposal on how ESG factors and ESG risks could be included in the regulatory and supervisory framework for credit institutions and investment firms.

The topics of questions for consultation are:

• common definitions of ESG factors, ESG risks and their transmission channels;
• quantitative and qualitative indicators, metrics and methods to assess ESG risks;
• the management of ESG risks by institutions; and
• ESG factors and ESG risks in supervision

The consultation runs until 3 February 2021.

Click here to access the Discussion Paper.