Legal & Regulatory News

EBA publishes its roadmap on sustainable finance

On 13 December 2022, the European Banking Authority (EBA) published its three year roadmap on sustainable finance (the Roadmap), outlining the objectives and timeline for delivering mandates in the area of sustainable finance and environmental, social and governance (ESG) risks.

The Roadmap builds on and replaces the EBA's first action plan on sustainable finance.  Within the Roadmap, the EBA highlight their key objectives regarding sustainable finance, including:

• transparency and disclosures to promote market discipline;
• the integration of ESG factors in risk management and supervision;
• prudential treatment of exposures;
• embed ESG risks gradually in the stress testing frameworks to identify bank's vulnerabilities;
• aid the development of standards and labels for sustainable banking products;
• manage the risks of greenwashing;
• integrate ESG risks into supervisory reporting; and
• monitor ESG risks and developments in sustainable finance.

Click here to view the press release.

Click here to view the EBA roadmap on sustainable finance.