Regulatory Alerts2026-01-08
ESAs Final Report on Joint Guidelines on ESG Stress Testing
The European Supervisory Authorities issued Joint Guidelines mandating competent authorities to consistently integrate environmental, social, and governance risks into supervisory stress testing frameworks. The document requires authorities to define clear objectives, scope, and scenarios for both short-term financial resilience and long-term business model assessments while ensuring methodological consistency across the EU. These guidelines apply to banking, insurance, and securities sectors and become effective on 1 January 2027.
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